Earlier quoted context omitted.
Most other fields of endeavor aren’t compensated based on the black market value of the thing that’s being produced. If we apply your analysis to other things, we’ll find that the upper bound price for a new car stereo or bike is ~ $100, and the price of any copyrighted good is bounded by the cost of transferring it over the network. I think it is more useful to divide the amount Google paid by the number of hours sp…
Bug bounty programs are not the only (or even primary) way that security researchers get paid. Google pays employees salaries to find vulns. Bounty programs are a pretty recent development and the idea that they should be scalable and stable well paying employment for a lot of people is a bit strange to me. If security researchers want to have stable employment doing this sort of work, there's oodles of job applicati…
So, the value to the researcher of having a found bug has a floor of the black market value.
The value to Google is whatever the costs of exploitation are: reputational, cleanup, etc.
A sane value is somewhere between these two, depending on bargaining power, of course. Now, Google has all the bargaining power. On the other hand, at some point there's the point where you feel like you're being cheated and you'd rather just deal with the bad guys instead.