Earlier quoted context omitted.
> If you're like me then development time is expensive. Is optimizing a function really the best use of that time? Sometimes yes, often no. Almost always yes, because software is almost always used many more times than it is written. Even if you doubled your dev time to only get a 5% increase of speed at runtime, that's usually worth it! (Of course, capitalism is really bad at dealing with externalities and it makes…
Nitpick: software optimization isn’t an example of an externality. Externalities are costs/benefits that accrue to parties not involved in a transaction.
> ex·ter·nal·i·ty: a side effect or consequence of an industrial or commercial activity that affects other parties without this being reflected in the cost of the goods or services involved
The buyer is an "other part[y]" from the seller's (edit: or better yet, developer, who might just be contracted by the ultimate seller...) perspective, and performance is basically impossible to quantify, therefore price.
Moreover, even if you want to limit externalities to being completely third-party... sure: Pollution. More electrical generation capacity needed.