3 ms·

Then why don't landlords raise the price until there are? Seems inefficient.

• jbooth 10y ago
  1) They already are 2) If you're going Econ 101 on this, ever heard of elasticity or switching costs?
  • ikeboy 10y ago
    1. Then why isn't there competition yet? This points towards a more complex model being needed. 2. I mentioned stickiness in https://news.ycombinator.com/item?id=11989391 https://news.ycombinator.com/item?id=11989391. But it makes the analysis more complicated, and the comments I was responding to were not at that level. Remember, I started by responding to a comment saying "There's no incentive for that profit to be passed on as reduced rates for the tenants.", which is a simplistic model.
    • jbooth 10y ago
      https://en.wikipedia.org/wiki/Spherical_cow https://en.wikipedia.org/wiki/Spherical_cow
      • ikeboy 10y ago
        I'm not saying the simple model is correct, I'm saying that you need a model which accounts for the things the simple model has. You can account for more things, and I did, but without doing that you aren't justified in complaining.