3 ms·
1) They already are 2) If you're going Econ 101 on this, ever heard of elasticity or switching costs?
by 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 ago1. 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 agohttps://en.wikipedia.org/wiki/Spherical_cow https://en.wikipedia.org/wiki/Spherical_cow
- ikeboy 10y agoI'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.