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This can be nuanced into infinity though. For example, the "first price" is not the first either. I usually spend good time looking for a good deal, a trusty de
by npteljes 3y ago
This can be nuanced into infinity though. For example, the "first price" is not the first either. I usually spend good time looking for a good deal, a trusty device, or something to consume, before paying the "first price".
So for the sake of simplicity, and to invoke thought, I think the two prices are good enough.
- imtringued 3y agoPlease don't bring transaction costs into play, you might ruin the beautiful neoclassical models. If money saves transaction costs, then it can't be neutral. The introduction of money becomes an essential part of the economy. It's not like there are good alternatives to money. Don't think this further and wonder if interest is just a monetization of the transaction cost savings. Then it would turn out that interest payments negate the benefits of the division of labor entirely.