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Does a store suffering increased theft generally cause higher prices?
9 votes

Price is set by the competition In general, the prices are set by the supply and demand for the whole market. If a merchant sells the same goods for a higher price than competitors without a ...

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How do economists explain why people contribute to Wikipedia?
8 votes

Look at the data For starters, the obvious thing is to look at the data about the self-reported reasons for contributing to wikipedia (and I'm surprised that neither the question asker nor most of the ...

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Can destruction be profitable?
6 votes

Cannibalization Assuming that the [near] expired goods cannot be sold at full cost anymore, offering them for sale at a significant discount (instead of destroying them) will compete with your own ...

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If no one knew about inflation, would inflation take place?
4 votes

Indirect "knowing" Explicit and direct publication of money supply information brings that information to the public quickly. However, in the absence of that, and with news social media not ...

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Is a mixed strategy ever the best response to a pure strategy?
2 votes

Repeated games and nonlinear utility Let's assume a trivial two-player game where each player has two options A and B; and the payout is +1/-1 if players pick the same and -1/+1 if players pick ...

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Why will inflation raise sellers' purchasing power?
1 votes

One price relative to others The key parts of the statement "When a price rises, buyers of that good must pay more, but sellers get more revenue when they sell it. The loss in buyers' purchasing ...

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Do circular invoices count in GDP?
1 votes

GDP is about final production GDP is about production of final goods or services for consumers, but both these transactions are examples of non-final production - one company provides a good or ...

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Country GDP vs Exports - why such a big difference?
1 votes

Production of goods vs location of consumption GDP measures the production of final goods. Export refers to where the produced goods get consumed. There's no reason to assume that these would be ...

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Business models based on things not happening
-1 votes

Recurring fee for a service that might be used There are many business models that sell you a subscription to a service that's either meant to be used rarely in case of a need, or with the expectation ...

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