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For all things not purchased with debt, this is true. But look at the housing market. Or, consider industries with severe information asymmetry: see the healthc
by JMTQp8lwXL 7y ago
For all things not purchased with debt, this is true. But look at the housing market. Or, consider industries with severe information asymmetry: see the healthcare industry. Raising prices is no problem for two of the most expensive line items in a middle class household's budget.
For everyone else, it's probably best to start with high prices.
- thorwasdfasdf 7y agoWell, it's not a matter of debt. It's more a matter of whether or not new entrants can enter the market and provide that good. In both real estate and Healthcare, it's very difficult for new players to enter the market, especially in highly regulated states. The result is a market where prices are much higher than they need to be.