5 ms·

Agree. I think the modeling is fine but it always seems to neglect consumer preferences for slower moving prices.

• rahimnathwani 12y ago
  Customer preferences for slower moving prices are just like customer preferences for lower prices. They must be traded off against customer preferences for availability. If prices didn't move then the market wouldn't clear, and some capacity or demand (at the current price) would be wasted.
  • pbreit 12y ago
    I said "slower moving" not "fixed".
    • rahimnathwani 12y ago
      You did. Perhaps my last sentence should have read: If prices didn't move fast enough in response to changes in demand/supply then the market wouldn't clear, and some capacity or demand (at the current price) would be wasted.