eventually struck, the agreement will be somewhere between the baker’s offer

of
$5 and your counteroffer of $2. Suppose the baker reduces her price to $3.
Relative to the original exchange, no add
Of course, you and the baker are a crucial premise upon which the rest of this is predicated.

Dollars are valued equally. What if the baker and you don't view money the same way?

Consider that she values every dollar more than you do; perhaps you find joy in

the pleasure of eating freshly baked bread, yet the baker worries about her

bakery's new venture succeed. If she values money more than you do, it has a higher value.

designed for exchange at a premium price. Increasing a $3 price to a $5 price

$5 is worth more to the baker than what it would cost you to pay that price.

regardless of how much you appreciate the incremental

less money than the baker.

Homogenous and heterozenous

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