Winter Olympics and the diminishing value of performance

|
Darryl Dyck/The Canadian Press/AP
US snowboarder Shaun White won a gold medal in the men's halfpipe competition at the Olympic Winter Games.

Given a fixed amount of money and increasing productivity, the value of money rises relative to the value of other goods (all caveats apply). The consumer sees this valuation change through falling prices at the checkout line.

Interestingly, given a fixed amount of points and improving performances in Olympic events, the value of each point rises relative to the underlying set of skills (jumps, spins, etc.). The viewer sees this through falling points at each subsequent Olympics.

So, while Shaun White's recent halfpipe performance was valued at over 48 points, the exact same performance will be worth something less in four years.

It's a wonder that the Chicago School hasn't advocated some standard (say 5%) increase in available points per year in order to achieve Olympic point stability.

Add/view comments on this post.

----------------------

The Christian Science Monitor has assembled a diverse group of the best economy-related bloggers out there. Our guest bloggers are not employed or directed by the Monitor and the views expressed are the blogger's own, as is responsibility for the content of their blogs. To contact us about a blogger, click here. To add or view a comment on a guest blog, please go to the blogger's own site by clicking on the link above.

You've read  of  free articles. Subscribe to continue.
QR Code to Winter Olympics and the diminishing value of performance
Read this article in
https://www.csmonitor.com/Business/The-Circle-Bastiat/2010/0219/Winter-Olympics-and-the-diminishing-value-of-performance
QR Code to Subscription page
Start your subscription today
https://www.csmonitor.com/subscribe