3 ms·
1. "People here" are a very small fraction of the economy. They may in fact buy superior products over cheap ones, but their numbers are too small to matter m
by AnimalMuppet 1y ago
1. "People here" are a very small fraction of the economy. They may in fact buy superior products over cheap ones, but their numbers are too small to matter much.
2. People don't always do what they say. They want superior quality, but they also want it at the same price as the inferior alternative. When push comes to shove, which will they choose? Not all will choose quality over cheapness. That doesn't mean they didn't want quality. It just means they didn't want it as much as they say they did.
- ramses0 1y agoAlso "market for lemons"- a friend told me she used to go to Macys/Dillards to buy $50 bath towels b/c they were better, nicer, more durable than the $20 ones from Walmart. Now she goes and still pays $50 for them, but they have been stealthily replaced by the equivalent of the inferior $20 ones. It becomes a market for lemons: you can't trust that paying more for a product gets you a better product so game theory says you have to pursue price minimization at all costs.