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Yes. exactly. Quoting GP: > the revealed preferences of consumers for those things is the cheaper version, not the better version.
by kuboble 4y ago
Yes. exactly. Quoting GP:
> the revealed preferences of consumers for those things is the cheaper version, not the better version.
- marcosdumay 4y agoWell, with non-diversified commodities, in a market with instant arbitration and universal complete knowledge about the products the Econ 101 models work. On the real world, they don't.
- yamtaddle 4y agoNo, you cannot pick out the preference for one component of the offering that way. If there'd been a 5-cents-higher option with the better box, they might have chosen that. You can only compare the entire offerings—convenience, quality of all components combined, cost, customer service, and so on, and say that that entire bucket was what they preferred to the other entire bucket.