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Reverse Jevons Paradox
21–30 of 65 posts
Re: Reverse Jevons Paradox
#22> if the cost of a resource goes up, the total spend on that resource can go down. Not unlike hiking taxes on the rich, seeing them vote with their feet, and revenue subsequently catering. But as long as we reward politicians for delivering blame more than results, this political folly will continue. Until Strein's Law[1] kicks the teeth in. [1] https://en.wikipedia.org/wiki/Herbert_Stein#Stein's_Law
Except that revenue doesn’t crater in a floating exchange rate system. Revenue from them craters but the money moves elsewhere and revenue improves there - including an increase in total transactions. Total revenue will always be Total spend less what people decide to financially save rather than spend. Because tax are percentages and the process is a geometric series.
Re: Reverse Jevons Paradox
#23In micro economics theory they call this price elasticity where you try lowering the price to see how much more customers buy and you plot that to a graph calculator to get a curve and the bend on the curve is the price elasticity. Then you can calculate the optimal price to maximize sales.
But you want to maximize profit, not sales.
Re: Reverse Jevons Paradox
#24Will it happen to memory? I am looking at you guys, electron apps.
Re: Reverse Jevons Paradox
#25Will it happen to memory? I am looking at you guys, electron apps.
If you had the right OS support for JS apps - all those apps that package a full chrome browser all of a sudden would have close to zero memory footprint.
Re: Reverse Jevons Paradox
#26In micro economics theory they call this price elasticity where you try lowering the price to see how much more customers buy and you plot that to a graph calculator to get a curve and the bend on the curve is the price elasticity. Then you can calculate the optimal price to maximize sales.
But you want to maximize profit, not sales.
"your margin is my opportunity".
Re: Reverse Jevons Paradox
#27> Jevons paradox happens when the cost of a resource goes down, but the total spend on that resource goes up. I would argue that is not Jevons paradox but standard supply and demand (and this "reverse Jevons paradox" too). Jevons paradox occurs when a more efficient use of a resource leads to an increase in its use (instead of a decrease as a first order analysis would suggest).
Supply and demand says when something is cheaper (or produced more efficiently), people will use more of it. But the critical part is that it doesn't say people will spend more on it.
Jevon's paradox is a special case of supply and demand, where people actually end up spending more money because something is cheaper.
It's interesting because consumption then grows in unpredictable ways: it can drive innovation even in cases where markets are constrained by monopolies, for example, where in non-Jevons cases producers would have no incentive to lower prices.
Re: Reverse Jevons Paradox
#28Jevons Paradox is called a paradox because it is non-intuitive. It is very intuitive to conclude that when costs go up, people will use less of that thing.
I think it's a paradox in the same way that the non-reverse is. The spending might go down more than it's proportion of price increase.
An example not anchored in anything: If public transit costs x, I'll use it every day. If public transit suddenly costs 2x, I'm not gonna use it every other day, I'll rather find an alternative and use 0.
Re: Reverse Jevons Paradox
#29I can’t tell if this is a troll post or not, but either way, the concept the author seems to be looking for is called the “Law of Demand” [0].
Re: Reverse Jevons Paradox
#30> Jevons paradox happens when the cost of a resource goes down, but the total spend on that resource goes up. I would argue that is not Jevons paradox but standard supply and demand (and this "reverse Jevons paradox" too). Jevons paradox occurs when a more efficient use of a resource leads to an increase in its use (instead of a decrease as a first order analysis would suggest).
Supply and demand says when something is cheaper (or produced more efficiently), people will use more of it. But the critical part is that it doesn't say people will spend more on it. Jevon's paradox is a special case of supply and demand, where people actually end up spending more money because something is cheaper. It's interesting because consumption then grows in unpredictable ways: it can drive innovation even i…
So like buying the larger jar of jam that costs more than the smaller jar because the cost per ounce is less for the larger jar.