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While revenue optimal, growth in retail is eventually driven by psychology, not pricing, since if there’s anything our real economy is good at producing, it’s m
by doctorpangloss 7y ago
While revenue optimal, growth in retail is eventually driven by psychology, not pricing, since if there’s anything our real economy is good at producing, it’s morons.
- whymauri 7y agoThat's the Bulow-Klemperer theorem. You would rather have more growth (bidders) at the expense of an optimal bidding mechanism.
- antpls 7y agoIf actors are humans, then sure. But if actors are rational computers, and it's used billions time a day, you might prefer optimality. Not saying this would be useful for communication between computers, but coming from CS degree, I have the intuition it could have some use cases.