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The reason greed has been ignored is that it lacks explanatory power. No one has established the mechanism by which greed varies over time, therefore affecting
by benced 2y ago
The reason greed has been ignored is that it lacks explanatory power. No one has established the mechanism by which greed varies over time, therefore affecting prices. Firms having greater pricing power - and reaping the benefits of that via higher profit margins - does not prove that greed has increased.
Capitalists are greedy is a basically accurate but also obvious observation that doesn't really teach us anything about the world.
- smeagull 2y agoIt's not greed that has varied. It was an inflationary shock. Greed explains why it hasn't gone back down once the shocks are gone. It's basically price collusion - nobody wants to be the first to decrease prices, so nobody does. Before the inflation, there wasn't an opportunity to collude in this manner.