AIM Framework glossary
A-Functional Price
Canonical definition
The A-Functional Price is the component of an Object's total price equal to what the Object would cost if purchased solely for its ability to correct deficits, or maintain the baseline. The A-Functional Price is the first of the three components into which Price Decomposition separates any Object's total price, the others being the I-Adequate Price and the Mimetic Premium, and the A-Functional Price is one of the two prices the Mimetic Premium parasitises at the economic level under Object Parasitism.
Explanation
The A-Functional Price is what an Object costs with nothing added beyond meeting a bodily need. For a house the A-Functional Price is the price of a dwelling that shelters its occupants and keeps them safe. Whatever is paid above that for quality that supports the occupants' own pursuits is the I-Adequate Price, and whatever is paid for what the house signals to a reference group is the Mimetic Premium.
Epistemic status
Framework-Specific Construct.
Derivation
Also in the entry
Distinction from Price Decomposition. Price Decomposition is the analytical separation of a total price into its three components; the A-Functional Price is one of those components and not the separation.
Related terms
- Price Decomposition
- I-Adequate Price
- Mimetic Premium (PM)
- Object Parasitism
- Appetites (A)