←back to thread

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

(www.wsj.com)
462 points JumpCrisscross | 1 comments | 30 Aug 25 20:56 UTC | HN request time: 0.25s | source
Show context
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.
replies(8): >>45078072 #>>45078084 #>>45078092 #>>45078099 #>>45078272 #>>45078591 #>>45078626 #>>45081428 #
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.

replies(4): >>45078188 #>>45078228 #>>45078656 #>>45078787 #
WalterBright ◴[30 Aug 25 23:04 UTC] No.45078787[source]▶
> It assumes everyone has the information they need

This is incorrect. Lack of information is priced in as "risk".

replies(1): >>45081068 #
1. sethammons ◴[31 Aug 25 07:14 UTC] No.45081068[source]▶
This is satisfying similar to the ai response in Hyperion as (spoilers) the entire system collapses.