3 ms·
Prices in massively inefficient markets do not follow the supply + demand equilibrium. Beer is not an inefficient market. You're doing the absurd comparison.
by tkel 7mo ago
Prices in massively inefficient markets do not follow the supply + demand equilibrium. Beer is not an inefficient market. You're doing the absurd comparison.
- pocksuppet 7mo agoIt's more correct to say supply and demand still drive the overall average, but in a high-friction market of unique items, every single case is still a unique case. It's not like moving wheat bushels or RAM chips. When they sell oil, they mix up all the oil from different producers in the same reservoir, in the same tanks. Electricity travels in the same wires. Housing is nothing like that.
- hunterpayne 7mo ago"they mix up all the oil from different producers in the same reservoir" Only when avoiding sanctions, not normally. And housing does follow economic principles no matter how much you wish that wasn't so.
- pocksuppet 7mo agoHousing doesn't follow economic principles that only apply to homogeneous bulk products, that's the point. Electricity is almost perfectly homogeneous. Then you have things like wheat and bread, which vary in quality but are close substitutes. Housing's at the complete opposite end of the spectrum. No two units are alike and they only trade every few years at best.
- kortilla 7mo agohousing isn’t an inefficient market. It’s surprisingly liquid for how large the purchases are