Quote:
Originally posted by Lo:
Hezbollah, herself, appears to believe that even 2 dead Israeli soldiers are worth at least 400 live Lebanese captives.
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Lo,
Your economics don't make sense. One side should be willing to trade x for y if it values x less than or equal to y. That is, it should either have an absolute gain or at least not lose anything. However, normally, each side trades something they value less to get something they value more. The difference in value is called a consumer surplus. This is the motivation for trading. All this proves is that, while Hezbollah values two dead Israelis less than or equal to 400 live Arabs, Israel values the 400 live Arabs less than or equal to the two dead Israelis. If anything, it is Israel's values that could be questioned here.
- Daniel
[This message has been edited by Daniel Haar (edited August 10, 2006).]