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Your argument is logical but you see you are wrong. There is something about human beings that makes them act un-rationally. Many Indians who live on less that
by digamber_kamat 15y ago
Your argument is logical but you see you are wrong. There is something about human beings that makes them act un-rationally. Many Indians who live on less that $2 a day own mobile phones.
Coca Cola and Pepsi realized that they need to trap this market hence they decided to come up with very small bottles that cost around half of a normal drink bottle and this strategy got them millions.
Similarly for stuff like Shampoo, ice cream and so on. Same thing can be applied to electronic items as well.
- doyoulikeworms 15y agoThis is not necessarily irrational, but a different expression of relative preference compared to the "most sensible" case. The reason I say this is because you cannot define a "rational" set of relative preferences. It is hard to say whether or not someone insanely frugal like Sam Walton is acting rationally or not, for example. Irrational behavior, in this context, could be that someone does value food over phones, but somehow ends up constantly buying phones to his misfortune. Not the same as someone who actually values phones over food.