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If we take the opposite of your logical argument, then lessened supply of anything increases it's value. That's a logical proposition stemming from your origina
by fzeroracer 7y ago
If we take the opposite of your logical argument, then lessened supply of anything increases it's value. That's a logical proposition stemming from your original thesis.
Now let's try applying that to bus networks. The more busses we have on the road, the less they're worth. If we reduce the supply of busses, then busses will be more valuable.
But this ignores the network effects of increasing the supply of something. If we increase the supply of busses, then we also increase the demand for busses and the value of busses through increased ridership. A single bus is worthless, but a fleet of busses is valuable to a community.
- beerandt 7y agoI honestly don't get these network arguments. The market isn't for seats on buses, it's for timely transportation. The quality of the transportation affects the value. Which in the case of buses, more buses equals a better, more frequent and readily available product. The number of seats isn't the limiting factor. It's just a side effect of somewhat standardized bus sizes. Am I missing something?