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That's not the point. It was that the market hypothesis of supply simply responding to demand doesn't actually hold. People sell things based on their percepti
by kristopolous 1y ago
That's not the point. It was that the market hypothesis of supply simply responding to demand doesn't actually hold.
People sell things based on their perception of future consumer sentiments, calculated margins, defensible moats, lots of things.
If someone wanted a compact sedan but the only thing for sale was SUVs, they aren't going to be like "I refuse! Bus pass for me" no. They will just bite the bullet and purchase the SUV.
Then the analysis will say "well people are buying the SUV! It looks very popular we should make more of them! I told you sedans were a bad idea!"
The supply and demand economics 101 ways of thinking are for fools and simpletons. It's why the iPhone wasn't a BlackBerry knockoff
- decimalenough 1y agoSUVS (and enormous trucks) are popular, but they are not "the only thing for sale". Alternatives do exist, they just not very, you know, popular.
- kristopolous 1y agoKind of. For a number of complex reasons SUVs are cheaper than sedans. I know with more stuff you think that would be more cost but things are complicated. I mean look at Hyundai's ev line up. I drive a kona because it's the cheapest. The next most expensive car is the 5 and then their most expensive (up until recently) was also their smallest! The 6. It's like twice the price and at the end of the day I just wanted to drive electric so I got the cheaper one. But if the ioniq 2 had a US release I'd be on top of that real quick
- cudgy 1y agoReminds me of the fashion industry … and manufactured consent