Re:Reinvigorating the most important battle in economics
by WalterBright on Sunday November 24, 2019 @05:59PM
(#21624106)
> They are almost always dwarfed by other forces (transaction cost, network effect, economies of scale, and information asymmetry for instance).
Those are all free markets, too. Consider information asymmetry, for example. The less I know about something, the riskier it will be for me to buy it, hence the less I am willing to pay for it.
I.e. information asymmetry is called risk, and is accounted for in the pricing. Companies are incentivized to reduce risk for their customers, because then they can charge a higher price.
Those are all free markets, too. Consider information asymmetry, for example. The less I know about something, the riskier it will be for me to buy it, hence the less I am willing to pay for it.
I.e. information asymmetry is called risk, and is accounted for in the pricing. Companies are incentivized to reduce risk for their customers, because then they can charge a higher price.