Re:Leaked Amazon memo warns the company is running out of pe...
by hansvm on Friday June 17, 2022 @02:26PM
(#31782317)
> This isn't a nuanced problem. If you raise the price of something, demand drops. Whether the price in question is for things or labor is irrelevant.
There's a little nuance.
Some anecdata: When I tried charging $0 to get my feet wet in consulting I had zero takers. Raising my hourly rate to $100 drastically improved my success rate (nothing else changed, I was still just some kid in high school with a knack for programming at the time).
The real world doesn't have perfect information and is more than happy to use imperfect signals to save time and effort (in any constant-bounded time that's provably required to hit any fixed desired epsilon of error). The price somebody is asking for is often enough a useful signal that demand need not be monotonic.
There's a little nuance.
Some anecdata: When I tried charging $0 to get my feet wet in consulting I had zero takers. Raising my hourly rate to $100 drastically improved my success rate (nothing else changed, I was still just some kid in high school with a knack for programming at the time).
The real world doesn't have perfect information and is more than happy to use imperfect signals to save time and effort (in any constant-bounded time that's provably required to hit any fixed desired epsilon of error). The price somebody is asking for is often enough a useful signal that demand need not be monotonic.