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>You can have perpetual shortages on the supply side that keep prices up. The entire luxury goods market relies on this, as an example. You'll have to go into
by ancap 11y ago
>You can have perpetual shortages on the supply side that keep prices up. The entire luxury goods market relies on this, as an example.
You'll have to go into more depth on your example. I'm not sure to what you're referring.
>But what about supply?
Reread the second paragraph in my comment. Generally, when the term "shortages" is used, it refers to supply.
As for the "perpetual shortages on the supply side that keep prices up", I'm not sure you are using the term "shortage" as it is understood in economics. Just because something is not available at a price I prefer does not connote a shortage (as defined in economics). Otherwise the fact that I cannot buy a Lotus car for $10k would mean there is a shortage. However, if the government introduced price controls on Lotus cars so they could only be sold for $10k, you would definitely have a shortage because more people would want them (demand) at that price point but no one would be willing to sell them (supply).
- phonon 11y agoLook up Artificial Scarcity.
- ancap 11y agoExplain how artificial scarcity could exist in a free market
- beambot 11y agoChanel captures the entire market for Chanel handbags. Their company entirely controls the supply, and they artificially limit the new supply fabricated each year. No other company can manufacture Chanel handbags. Hence: artificial scarcity. Many luxury good companies operate on this premise. Hence my original comment.
- ancap 11y agoYou are not describing a shortage as defined in economics. Re-read my previous comment. You are not even describing a monopoly because there are still alternative brands, even luxury brands, which people can buy. Otherwise any brand would be considered a monopoly. EDIT: used "scarcity" instead of "shortage"