That would be a money pump if they preferred style A over style B, and style B over style A. But that isn’t what they really prefer. What they prefer is to wear whatever style is in fashion. Style A is preferable to style B if and only if style A is in fashion, and vice versa. Preferring specific styles is an instrumental value, staying in fashion is the terminal value.
Similarly, imagine one day I prefer pizza to tacos, the next day I prefer tacos to pizza, and the day after that I prefer pizza to tacos. My preferences weren’t intransitive, because I didn’t really prefer those foods at all, what I preferred was eating tasty things, preferring tacos or pizza were instrumental values. During the day I preferred tacos to pizza, I had gotten sick of pizza and no longer found it tasty.
There seems to be some confusion. When we say “money pump” we are talking specifically about the dutch book. We aren’t listing (arguably) inefficient ways to spend money.
You do, but saying fashion is a money pump because you need to keep spending money to stay in fashion is like saying that grocery stores are a money pump because you need to keep spending money to not starve.
Oh, sorry, I wasn’t saying fashion is a money pump, just noting that it’s a problem for agents who’s preferences change with the passage of time; just like needing to purchase food is something most people would avoid, if possible.
That would be a money pump if they preferred style A over style B, and style B over style A. But that isn’t what they really prefer. What they prefer is to wear whatever style is in fashion. Style A is preferable to style B if and only if style A is in fashion, and vice versa. Preferring specific styles is an instrumental value, staying in fashion is the terminal value.
Similarly, imagine one day I prefer pizza to tacos, the next day I prefer tacos to pizza, and the day after that I prefer pizza to tacos. My preferences weren’t intransitive, because I didn’t really prefer those foods at all, what I preferred was eating tasty things, preferring tacos or pizza were instrumental values. During the day I preferred tacos to pizza, I had gotten sick of pizza and no longer found it tasty.
You still lose money, though.
There seems to be some confusion. When we say “money pump” we are talking specifically about the dutch book. We aren’t listing (arguably) inefficient ways to spend money.
Oh, indeed! I was just noting that preference change over time is a problem, not the same problem as money pumps.
You do, but saying fashion is a money pump because you need to keep spending money to stay in fashion is like saying that grocery stores are a money pump because you need to keep spending money to not starve.
Oh, sorry, I wasn’t saying fashion is a money pump, just noting that it’s a problem for agents who’s preferences change with the passage of time; just like needing to purchase food is something most people would avoid, if possible.
Fashion isn’t so much about changing preferences as people engaging in signaling games.
True. The problem exists, though, even if the example isn’t a terminal preference.