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Infinite prices for nonexistent goods aren't a naked singularity, it represents something meaningful. Naive models don't engage with the information aspect of
by samatman 4y ago
Infinite prices for nonexistent goods aren't a naked singularity, it represents something meaningful.
Naive models don't engage with the information aspect of scarcity but the field of economics certainly does. Peaches never hit infinite price, there's too much production, but "I know a guy" certainly becomes part of the market-clearing mechanism, that boils down to reputational capital. Even in normal market conditions there are people making their living on that sort of capital, picture someone who can reliably get sashimi-grade fish at a less insane price.