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Equation 18 · Part 2 · When Generation Becomes Free, Attention Becomes the Scarce Good

Symbol q

v(q)v(q)
qq

What this part means

q is a part of this expression. Its role is fixed by the surrounding article and by the operations shown in the formula.

Its job in the formula

q is a part of this expression. Its role is fixed by the surrounding article and by the operations shown in the formula.

The passage around this formula

where v(q) is the buyer’s value of quality q and c(q) the seller’s reservation value. Only sellers whose reservation value lies below the prevailing price participate, and the price is the expectation over exactly that self-selected pool [ 2 ] .

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Learn the underlying idea

A variable is a named place for a value. Its letter is a local label: x can mean position in one formula and a data point in another.

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Sources cited in the surrounding passage

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