[jon_richards]

Just because something is limited in supply and capable of reproducing doesn't mean it inherently has value in the context of the greater economy. I don't think this "debunks" the irrationality of tulips. When the price crashed, they weren't left with a tulip they could continue to breed and make a living with, they were left with a worthless tulip.

I'll admit irrationality is hard to define. One could argue the entire art in industry is irrational, but given how low it's been around, it's safe to assume it ties into some fundamental irrationality in us that in turn makes it rational.

[darawk]

Yes, but the discounted present value of that tulip's reproductive capacity into the future is much more justifiable to value so highly. It turned out not to be a good investment, but that doesn't make it irrational. Had a moderately good tulip market persisted, it may have justified paying such a high price for uniquely high quality bulbs, because you could turn them into a productive asset by breeding them.