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by snagglegaggle
2397 days ago
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While homo economicus is mocked for being nonexistent there is a reason that perfectly rational actors are used in economic models -- in general people are extremely rational, it is just their priorities are not what you expect them to be. I'm sure you can find plenty of HNers whose friend groups express strong preferences to buying better. There's just nothing to buy better. |
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So despite rational acting buyers, if the supply-side conspires (or monopolizes) to reduce options, buyers will continue to buy the overpriced item (and possibly increase prices due to the demand/price curve sweet spot).
Perhaps instead of mocking rational-actor theory we should also model conspiring-actor model where possible.