In real estate transactions, it might be based on the potential for
appreciation on a particular property (positive power), or perhaps it might be based on what they will miss out on if they pass on the deal (negative power).
If today's hurdle rate is lower than the average past
property appreciation rate for a
particular market, then it makes sense to buy, because future
property appreciation should enable an individual,
on average, to create more wealth through owning than renting.