2 Matching Annotations
  1. Aug 2020
  2. Jul 2019
    1. might markets just not work?

      Same thing in publishing, too. Lots of people say journal costs are inflated & they can run one cheaper. They're right, but there are two considerations: a) in a market economy prices reflect more than just costs. They reflect the economic value, which includes things like brand value, prestige and also, as this & the other posts argue, an inflation due to productivity rising in adjacent market sectors. So the market failures seem to come from a) the difficulty knowing how much something should cost (having comparables and not having too much complexity to understand) and b) too high value ascribed to the status or prestige (which, if understood as a social consensus proxy that reduces the complexity of actually understanding the business & what it's value to the consumer should be, collapses b into a).