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See the comment above, the price revelation is a side effect of an investigation into labor law violations. In the meantime, in a rational market, a product co
by kibwen 2y ago
See the comment above, the price revelation is a side effect of an investigation into labor law violations.
In the meantime, in a rational market, a product commanding a 50x markup would quickly have its price driven down by competitors, which is more evidence that our markets are dishearteningly irrational. Profit represents market inefficiency.
- clarkmoody 2y agoWhat's the markup on software?
- JoeAltmaier 2y agoClearly fashion and branding are immune to that calculus. Else we'd be buying designer clothes by the pound. In other news, it cost around $4 to mine each carat of Canadian diamond worth $100.
- s1artibartfast 2y agoThere is no crisis where markets don't supply handbags for less than $2k. Similarly, Markets are not a monolith so this doesn't prove anything about markets in general. Economics is a broad science which works to establish a model of commerce, with varying degrees of accuracy and utility. Profits are not an inherently bad thing or dirty word. It just means that surplus value was created by a transaction, and workers can profit too
- shortsunblack 2y agoProfit as intended means producer surplus. Economic theory predicts producer surplus reaching 0, while consumer surplus getting maximized. That is what competition does. It does tell everything about markets. This does not happen because of IP doctrines, which distorts competition. And advertising, which causes information asymmetries.
- s1artibartfast 2y agoHighschool theory might predict that for the price of butter, but everything after that is more complicated. I feel like you are setting up strawmen positions for economic theory, using more economics to refute them, and then claiming economics is bunk.