(July 16, 2013 at 11:14 pm)genkaus Wrote: Under the priority use model, suppose I pay for priority use of the land for 10 years while expecting a certain minimum output. And that is the output I would get if I use it now. But I defer it for 20 years, others with secondary use rights will use it, which will result in my bottom line dropping after 20 years. The choice of deferment here carries with it a certainty of loss of value. My question is, how would this certainty of loss be addressed or offset within this model?It would be addressed by not being part of this system, in my particular brand. Others may wish to include it.
Quote:On a side note - as it happens - we can even assure the monetary value of what is owned for a future date. The futures contracts and forward trades are made specifically for this purpose.A futures contract is a business agreement agreed upon by both parties. Under our system (and under the priority use system) this would be possible, but in neither system is the assurance of said value built into the system itself.
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