Producers and sellers of technical goods (bikes, electronics, machines, cars etc.) are constantly persuading you that there is a best Price/ Performance product. Is that truly so?

Let's say a Tour de France rider and average Joe were buying bikes and they both had only 20.000 EUR to spend for every need and want they have. Would they both be looking for the best Price/ Performance bike? Yes, they're both rational. Would they buy the same bike? No. If Price/ Performance was an objective criterium they should have both bought the same bike! Heck, if Price/ Performance was truly an objective criterium and we were rational, we should all be buying the same stuff.

Obviously bike performance is much more important to a Tour de France rider and he is willing to pay much more for a bike than average Joe. After all, in a world decided by seconds the best performing bike might just be the thing that makes the difference. Average Joe on the other hand wouldn't mind spending considerably less for only a minor performance loss.

As a rule of thumb, we people are all rational. Therefore, we always make the best Price/ Performance purchase. It is just that the Price/ Performance depends on our goals and means.

Think about that the next time the seller will be trying to sell you the best Price/ Performance product. Best for who?