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Revealed preferences are only as revealing as the market is competitive. In monopolies, is it not revealed that the populace prefers to be price-gouged? In a ma
by qazxcvbnm 2y ago
Revealed preferences are only as revealing as the market is competitive. In monopolies, is it not revealed that the populace prefers to be price-gouged? In a market as regulated as housing and with deep ties to policy (and industrial structures that I have heard about which I do not understand), it's difficult to not be sceptical of revealed preferences as a sole convincing explanation.
- Retric 2y agoWhat you’re describing may impact housing developments etc, but I don’t think many markets are more competitive than used homes. Despite its rarity a 3 acre lot is rarely worth 3x what a 1 acre lot would be, unless it can be subdivided.