4 ms·
> Except the market can stay irrational longer than you can stay solvent. This applies solely to stock market speculation, due to a perfect amalgamation of hum
by stagbeetle 10y ago
> Except the market can stay irrational longer than you can stay solvent.
This applies solely to stock market speculation, due to a perfect amalgamation of human psychological biases and fallacies.
In consumer economics we use utility value (iirc, it's been far too long since I've opened a textbook). Consumers will definitely drop their JD's if a "no-bullshit," almost as good option comes along, because the utility value gained will be higher than the asset loss.
- michaelmrose 10y agoThis assumes consumers actually rationally assess the value and don't value emotional brand attachments.
- MichaelBurge 10y agoWe're talking about farmers, not porn viewers. We not only can assume they're rational, but have spreadsheets for financial modeling and a dedicated capital expenditures budget. And if they don't do any of these, it would be easier to buy them out and replace them with someone who does.