Originally Posted by
hawkandhoo
But when folks say that they value a $10,000 (or $26,000!!!) F ticket at $2,000 because that's all they would be willing to pay for it, then that paradigm breaks down, because they aren't talking about real world choices any more -- they will never be able to buy that ticket for $2,000.
I find it helpful to think of the scenario this way.
Suppose a rich relative gave you a gift of $26,000. It can only be used for plane tickets but it can be used for as many plane tickets as you want until it runs out.
What's the largest portion of that gift you would spend on that F ticket in that scenario?
That will give you a sense of value.
Then make sure you pay less than that (in cash outlay to buy them or lost cashback for earning) for the miles you use to buy that F ticket. That will give you the actual cost for the ticket and ensure it is less than what value you place on the trip.