Suppose you are bidding on a used car and someone else bids above the highest amount that you are willing to pay. What can you say for sure about that person's monetary value of the good compared...
Suppose you are bidding on a used car and someone else bids above the highest amount that you are willing to pay. What can you say for sure about that person's monetary value of the good compared to yours?
The only thing that you can say for sure here is that the monetary value of that used car for the other person is higher than the car’s monetary value for you. You cannot really say that the person values that car more than you do. You can just say that they place a higher monetary value on it than you do.
The monetary value of an item for a given person is the amount of money that that person would pay for it. It does not necessarily mean that the person who places the higher monetary value actually values the item more. For example, let us say that Person X has 10 times more money than I do. Then let us imagine that he is willing to pay twice as much for the item as I am. Does he really value it more? Maybe not. I would have been willing to pay a higher percentage of my money for it than he would. But he still places a higher monetary value on it.
So, the only thing that we can really say is that the person who bid higher than you places a higher monetary value on that used car. You cannot say anything about how much they really value it.