What We Don’t Know

For the free market to work it is assumed that everyone knows everything, or at least everything they need to know. However the world is full of things we know nothing about. This is the problem of asymmetric information, where one person knows more than the other. This creates many problems which hamper the operation of the free market and prevent it from reaching the perfect equilibrium. Continue reading “What We Don’t Know”

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Built To Break

There is a problem with the free market and consumerism. You see, it is based upon increasing sales as much as possible. As soon as you sell something you want that same person to buy another product from you. You could do this by competing on price or quality, or you could build the product such that it either breaks down or goes out of fashion very soon. This process, known as Planned Obsolescence, is rarely discussed but quite logical and sensible. Continue reading “Built To Break”