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Decentralization doesn't necessarily imply lower supply of goods, but it does almost certainly result in higher cost of goods (outside of compared to monopolies
by xboxnolifes 2y ago
Decentralization doesn't necessarily imply lower supply of goods, but it does almost certainly result in higher cost of goods (outside of compared to monopolies). That's the cost of market resilience: higher average cost for lower variance over time. Higher cost of goods may result in lower demand and then lower supply, but the causal order is the opposite direction from assuming decentralization means lower supply.
- taeric 2y agoFair, I was sloppy there. My assertion is better stated that it will be a different supply curve with higher unit costs. Which should be expected to have a different intercept with demand on where you expect things to even out.