Prices aren't just about supply and demand, but control over supply and demand
dougaldlamont.substack.com
Prices aren't just about supply and demand, but control over supply and demand
1–10 of 41 posts
Re: Prices aren't just about supply and demand, but control over supply and demand
#2Nice description. Completely free markets are rarely efficient, but well regulated ones can be. All sorts of risks and externalities can substantially increase transaction costs. Crypto currencies show that even the most basic (store of value and currency exchange) economic transactions have substantial overhead. Most people end up using exchanges that have lower cost transactions with acceptable risk (most of the time).
Re: Prices aren't just about supply and demand, but control over supply and demand
#3One odd thing about economics is that people will be familiar with roughly half of an introductory textbook, and then think they know everything about the subject. The fact that there is such a thing as "market power" is understood by every economist, and is central to the topic of "industrial organization". Increases in market power are even one of the standard explanations for the business cycle (they call them "markup shocks). Maybe the author knows that, but it's not clear from the post.
Re: Prices aren't just about supply and demand, but control over supply and demand
#4There is no practical difference between the two.
Re: Prices aren't just about supply and demand, but control over supply and demand
#5It shocks me that this article could be written without mentioning the phrase "price elasticity" a single time (a word I learned in a class literally numbered "econ 101").
Re: Prices aren't just about supply and demand, but control over supply and demand
#6> It’s very clear that large companies do abuse their market power (price-fixing and collusion)
Can we get some examples of this? (not implying otherwise)
Re: Prices aren't just about supply and demand, but control over supply and demand
#7It shocks me that this article could be written without mentioning the phrase "price elasticity" a single time (a word I learned in a class literally numbered "econ 101").
So basically another blog post describing someone almost re-discovering basic economic principles from first principle?
Re: Prices aren't just about supply and demand, but control over supply and demand
#8OPEC knew this for ages.
Re: Prices aren't just about supply and demand, but control over supply and demand
#9It shocks me that this article could be written without mentioning the phrase "price elasticity" a single time (a word I learned in a class literally numbered "econ 101").
In which paragraph do you think that phrase belongs?
Re: Prices aren't just about supply and demand, but control over supply and demand
#10Let's not forget that the narrative behind scarcity will also drive prices.