Economics

The Price Is Right?

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blago

If you're going to sell a Senate seat, Blagojevich (if that's even your real name), at least try to get the right price for it. Leigh Caldwell of Knowing and Making offers several methods for determining the correct price.

From Method #2: Market Price:

We believe that one candidate was offering $500,000, another was offering $1 million and a third was offering "nothing but appreciation". We don't know what the President-Elect's appreciation is worth, but apparently it's less than $1 million. Given that there is a monopoly supplier of this position and a limited number (1) of the commodity available, the highest price offered by any buyer is the one that will clear the market. So on this method, $1 million is the answer.
Read the whole thing to get the discounted cash flow and marginal returns methods. 
 

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  1. Since Blagojevich was in essence trying to fence the stolen (not his to sell) seat there is no way he could get a true market rate.

  2. since the average senatorial candidate spends about $20M to get elected, $1M sounds like a real steal…

  3. Since Blagojevich was in essence trying to fence the stolen (not his to sell) seat there is no way he could get a true market rate.

    Hence the discounted rate that wayne quotes. Ain’t Illinois politics wonderful? He’s still trying to use “leverage”, this time by his resignation.

  4. Remember Blagojevich was only selling two years of a six-year term. He’d better give a discount.

  5. It seems to me, having the favor of the POTUS is worth more than a million dollars.

  6. It seems to me, having the favor of the POTUS is worth more than a million dollars.

    Trust me, honey, it ain’t all that great.

  7. Maybe we can persuade Ron Paul to use his leftover millions to enter the auction?

  8. I want to know where Blago thought he could put a million bucks that he got from this.

  9. Mo | December 16, 2008, 3:12pm | #

    It seems to me, having the favor of the POTUS is worth more than a million dollars.

    It seems to Blago it wasn’t. I guess it depends on what you want.

    From the FBI tapes: “I want money.”

    Having the favor of someone who won’t help you get a lucrative no show job or raise a pile of dough for you doesn’t seem to rate very highly to Hot Rod.

  10. “Episiarch | December 16, 2008, 3:26pm | #

    I want to know where Blago thought he could put a million bucks that he got from this.”

    Hey, retaining defense lawyers costs a lot of money! Lawyers are also smart and have offshore accounts.

  11. What a pathetic lowball, I would have asked for at least 10.

  12. Egosum, you missed my obvious setup. The proper answer would have been “under his hairpiece.”

  13. Episiarch,

    I was thinking his freezer.

  14. Also, despite the thread from weeks ago . . . I’m still not convinced Nick Gillespie and Rod Blagojevich aren’t the same person. “Rod Blagojevich” just sounds like an alias. Nick Gillespie sounds like a nom de plume.

  15. He wouldn’t hide it, Epi. He immediately invest it to start Mr. Beef franchises all over the country. He then he would be a hero and all would be forgiven.

  16. And, on a purely popular culture note, the headline should have been: The Price is Wrong, Bitch!

  17. Why do your two posts referencing Mr. Beef and Adam Sandler seem to compliment each other?

  18. “You want to go to Red Lobster? I’ve got coupons.”

  19. The proper answer would have been “under his hairpiece.”

    You mean it’s not “F*ck you?”

  20. That would also be acceptable, joe.

  21. Agreed. His hair already is a big “fuck you” to anything resembling taste, so it is a natural progression of his character.

  22. I want to create a country-wide scavenger hunt. One of the top items will be “Blago’s hair”. Also included: one of the Brangelina children.

  23. His hair already is a big “fuck you” to anything resembling taste, so it is a natural progression of his character.

    slow down, pardner! you ought to consider Mr. Gillespie’s feeling before you post such an observation.

  24. Wonder what Alan Keyes offered that man?

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