4 ms·
Price takers still get value, since the price they're taking is above their reservation price. The employer may capture more of the total surplus if they have m
by ikeboy 5y ago
Price takers still get value, since the price they're taking is above their reservation price. The employer may capture more of the total surplus if they have market power.
- anigbrowl 5y agoI don't regard that as value; your reservation price is what you can't afford to go below, not what you want.
- ikeboy 5y agoOf course you don't want the reservation price; a transaction at that price provides no value to you by definition. You prefer a transaction at a higher price to one at the reservation price. Satisfying that preference is valuable.