3 ms·
If every product/service has exactly zero consumer surplus, then consumers won't have any reason to prefer product/service A at price p over product/service B a
by blackbear_ 2y ago
If every product/service has exactly zero consumer surplus, then consumers won't have any reason to prefer product/service A at price p over product/service B at price q, or even over not spending money at all. This will kill innovation, since business competition is based on providing a higher consumer surplus (better quality for the same amount of money, or same quality for less money). This is a clear market failure, therefore this kind of discriminatory pricing should be made illegal.
- robocat 2y agoI'm not sure you should be mixing perfectly rational buyers and imperfect markets together and then hypothesizing A therefore B from those assumptions. Are there better economic theories than traditional microeconomics? Something that (a) models information asymmetry, (b) models measurement risk/variability of expectations versus actual reward, (c) doesn't assume a perfectly rational consumer or producer - instead follows what we see in the world better?