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Six months into tariffs, businesses have no idea how to price anything

(www.wsj.com)
462 points JumpCrisscross | 4 comments | 30 Aug 25 20:56 UTC | HN request time: 0.333s | source
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casey2 ◴[30 Aug 25 21:10 UTC] No.45078043[source]▶
This is how you know most economic theory is a total lie, if it wasn't they would just "price what people are willing to pay" and be forced to eat the loss. Is that cause copper bathtubs are a special item or are you just making up more rules after the fact to patch holes in your leaky theory.
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thayne ◴[30 Aug 25 21:18 UTC] No.45078099[source]▶
It's because basic economic theory makes some really bad assumptions. It assumes everyone has the information they need, and sellers can instantaneously change prices in response to changes in demand or cost of production.

Neither of which is true in the real world.

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1. JumpCrisscross ◴[30 Aug 25 21:41 UTC] No.45078228[source]▶
> basic economic theory makes some really bad assumptions. It assumes everyone has the information they need, and sellers can instantaneously change prices in response to changes in demand or cost of production

This…is not true. What theory are you referring to?

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2. throwawayqqq11 ◴[30 Aug 25 21:58 UTC] No.45078348[source]▶
https://en.m.wikipedia.org/wiki/Homo_economicus

Its a long time known flaw in economics. Im sure there are better models but i still agree with GP, the scientific field of economics is still a joke on par with psychology.

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3. ◴[30 Aug 25 22:12 UTC] No.45078441[source]▶
4. SpicyLemonZest ◴[30 Aug 25 22:13 UTC] No.45078453[source]▶
There's nothing in this article about an assumption of perfect information or of instantaneous price changes.