Ask Lemmy
A Fediverse community for open-ended, thought provoking questions
Rules: (interactive)
1) Be nice and; have fun
Doxxing, trolling, sealioning, racism, and toxicity are not welcomed in AskLemmy. Remember what your mother said: if you can't say something nice, don't say anything at all. In addition, the site-wide Lemmy.world terms of service also apply here. Please familiarize yourself with them
2) All posts must end with a '?'
This is sort of like Jeopardy. Please phrase all post titles in the form of a proper question ending with ?
3) No spam
Please do not flood the community with nonsense. Actual suspected spammers will be banned on site. No astroturfing.
4) NSFW is okay, within reason
Just remember to tag posts with either a content warning or a [NSFW] tag. Overtly sexual posts are not allowed, please direct them to either [email protected] or [email protected].
NSFW comments should be restricted to posts tagged [NSFW].
5) This is not a support community.
It is not a place for 'how do I?', type questions.
If you have any questions regarding the site itself or would like to report a community, please direct them to Lemmy.world Support or email [email protected]. For other questions check our partnered communities list, or use the search function.
6) No US Politics.
Please don't post about current US Politics. If you need to do this, try [email protected] or [email protected]
Reminder: The terms of service apply here too.
Partnered Communities:
Logo design credit goes to: tubbadu
view the rest of the comments
Here's the test, everyone stops buying milk. Go.
did it work?
You still don't understand basic markets, huh. That's unfortunate.
I understand that markets are populated by irrational actors.
That's not relevant. This issue is more basic than that. It's the most basic.
Out of morbid curiosity. Hypotheticaly, why or how do you think a producer would continue to operate at full scale with no buyers?
saying it's basic is hand waiving. say what you mean.
So you don't have an answer, that's fine, figured as much. Hand waiving, indeed.
Irrational actors are unpredictable in compounding ways. The concept is a meta analysis of the individual and the masses. Biases, irrational fear, herd dynamics, etc. These can lead to unpredictable outcomes.
But markets can still function, sometimes, because of other factors. Leverage, venture investment, loss management, mergers and acquisition, etc. And learning from witnessing a counterintuitive market dynamic.
In this, most basic example, there are no compounding factors in either case. There are no buyers. So, their irrationally is not a factor. And there is only production of a supply that has no demand.
Someone producing a degradable product that has no buyers is not what is meant when discussing irrational actors.
It's not referring to some crazy person who will just operate at a loss forever. And even if it was, they couldn't even do it forever if they wanted to.
Dodging the question, plugging your ears, and saying, "I heard a term one time that says they could be crazy and would just keep doing it forever for no reason. Prove me wrong." Is not the gotcha argument you think it is.
Basic markets are not capitalism.
no one proposed that but you