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/biz/ - Business & Finance

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11528290 No.11528290 [Reply] [Original]

Why does economics assume the average customer is aware of the quality of the products they purchase? Why does economics assume the average customer is conscious and self-aware? Why does economics assume every seller is motivated solely by profit maximization? If supply and demand is real how do you explain the phenomenon of "Veblen goods"?

>> No.11528471

why are you such a faggot?

>> No.11528489

>>11528471
/thread

>> No.11528490

It doesnt. That was what was supported by those ones that were looking into making much money short term

>> No.11528902

>>11528290
Economics is full of assumptions to simplify observed relationships, and models have too few inputs to reflect a complex reality. That doesn't mean economics is useless. It just means that you have to be VERY VERY careful about the assumptions you make when you try to apply economics to the real world. A lot of economic models act like black boxes, because we rely on them so much but only a small percentage of the population knows how they were derived. That doesn't mean the model is wrong, it just means it was misused. Economics provide you with a set of tools, but they are misused in all sorts of ways, especially when it comes to politics. A good historical example is the Phillips Curve.

>> No.11528930

>>11528290
Veblen goods can only exist in an environment where an upper middle class can enjoy to have the luxury of having and that prosperity was given through the uninhibited forces of supply and demand

>> No.11528932
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11528932

>>11528290
Because NPCs. If some celebrity wears/uses a particular product, NPCs will buy them in droves.

>> No.11528952

>>11528930
How do you explain tater tots? When they first came out, they had to raise the price before people started buying them.

>> No.11528987

>>11528952
>When they first came out
They came out in 1953, which was literally the fucking 50s boom

>> No.11529001
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11529001

There is a story that has been going around about a physicist, a chemist, and an economist who were stranded on a desert island with no implements and a can of food. The physicist and the chemist each devised an ingenious mechanism for getting the can open; the economist merely said, "Assume we have a can opener"!

>> No.11529027
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11529027

>>11528930
>>11528932
>>11528952
>>11528987
>>11529001

stop replying to communists you idiots.