Question

Explain the concept of sentimental value. What type of utility is at play here?​

Answer 1

Answer:

Sentimental value is the value of an object that is derived from personal or emotional association rather than its material worth. It is the inflated opinion value based on what the sellers want. The fair market value differs from sentimental value, as both parties to a transaction must agree to its worth.

Answer 2

The worth of an item that derives from a personal or emotional connection rather than its monetary value is known as sentimental value.

• It is an inflated opinion value driven by the vendors' desires. Since both parties to a transaction must agree on the worth, a fair market value would be distinct from emotional value.
• You may be familiar with emotional value in relation to investments. For instance, if you were investing in a firm only out of emotion—for instance, because it is headquartered in your hometown—rather than logic—that is, because you are diversifying your portfolio—you would be making a mistake.
• You may have received advice from your financial advisor to be cautious about attaching emotional value to your assets.

spj2