RE: Money – A Formula for Perceived Value, Reward and Punishment
Interesting post and I do agree with some of your views, but it seems that trust is overvalued in your presentation.
If we compare two identical houses, one in the United States and one in an Eastern European country, the United States house will be more expensive.
I don't know what EE countries you have had in mind, but in most European countries comparable houses are MORE expensive than in the United States. Even in some Eastern European countries to build a comparable house might be more expensive than in the US, as due to taxes materials and land are more expensive. In Central and West Europe also labour is either comparable or more expensive than in the US.
Trust alone does not explain why houses in London are much more expensive than houses in Newcastle.
interesting that you use the concept of "value" (as in "overvalued") to describe something. It might prove my point, at least partially: all value is perceived value, not "intrinsic" value.
Intrinsic value we both agree is a myth, but value is quite a strong concept, for example c value is ~ 299 792 458 m/s.
I think you are going in good direction, however concepts like trust and perceived value are not strong / well defined enough to build upon... a good theory.