>
> Talk about teaching bullshit: Every single valuation model in your basic
> finance text i s totally incapable of explaining this. I have to teach a
> "Secs & Invest" course and I'm going to use Barrie Wigmore's
> trashing of the
> Dividend Discount model in his "Securities Markets in the 1980s: The New
> Regime 1979-1984." People should check this very interesting book out.
> Wigmore is one very, very sharp fellow (a limited partner at Goldman, who
> lives in Yoko's building), I recommend his book.
There's an interesting parallel here to a thread on the post-keynesian list regarding the price of oil. The elder statesman of that list, Prof. Paul Davidson, argued convincingly that the spot price of oil had no relation to actual estimates of long-run supply. As with Amazon, price depended on what people thought people would be willing to pay for shares in the short run.
Other people have probably figured this out already and written volumes about it, but the Amazon phenomenon makes it more obvious than ever.
mbs