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> Those sweet economists. (I’ve got my MSc in Economics ;) > Giffen and Veblen goods? Let me know when you find one. Grazing grounds for the perpetually count
by nanis 4y ago
> Those sweet economists. (I’ve got my MSc in Economics ;)
> Giffen and Veblen goods?
Let me know when you find one. Grazing grounds for the perpetually counter-example starved.
> I’m all for the theoretical models
Nothing theoretical about what I said: Simple logic.
Your claim is that Dutch butchers would prefer to leave free money on the table?
- wjnc 4y agoYes, I believe that every (small) shop or store leaves money on the table all the time. The best I can give you is somewhat optimizing some of the time with long perturbations. A function of social relationships on all sides, Excel [1], one-shot pricing, bounded rationality and myopia, endowment effects etc. If you look at the economic performance of firms within sectors you’ll see massive diversity in value added. That’s pretty much proof that business leave money on the table. Other example is the way inflation winds it’s way through pricing. It’s rocky and uneven. Anyone whose ever seen a business in operation will agree it’s satisficing not optimizing. [1] Excel explains why large companies retain lots of efficiencies. Nature of the firm debate points to all kinds of relative efficiencies, which I happily applaud.