> Or people do actually prefer the slightly-more-expensive option, but it gets phased out and then there is only the cheap option and some artisanal bullshit ve

> Or people do actually prefer the slightly-more-expensive option, but it gets phased out and then there is only the cheap option and some artisanal bullshit version that costs 5x and much so only rich people buy it. If the majority of people prefer plastic jugs of milk over reusable bottles of milk, then the milkman no longer benefits from economies of scale, so they have to increase prices. This causes more people to switch to plastic jugs of milk, so milkmen have even less economies of scale, etc. The only stable equilibrium is for the milkman to market his service as a luxury.