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People who want TVs (or who want to replace their current TVs) will buy one eventually. But if you’re in the TV-manufacturing business, there’s a big differenc
by sethg 15y ago
People who want TVs (or who want to replace their current TVs) will buy one eventually. But if you’re in the TV-manufacturing business, there’s a big difference between a world in which the average TV gets replaced every three years and a world in which it gets replaced every four years.
- orangecat 15y agoAnd if TV prices were rising instead of falling, people would replace them more often?
- sethg 15y agoWhy do people line up for things like day-after-Thanksgiving sales? Because they know that the retailer is offering someting they want that will become more expensive later. So yeah, people who want TVs, and who think that TVs are about to become more expensive, will hurry up to get TVs, while those who think that TVs are about to become cheaper will put off their purchases. In countries that have hyperinflation, you see extreme cases of this: middle-class consumers spend their paychecks as soon as the money is deposited, because they’d rather have anything on hand than cash in the bank.