Comments on: When demand slopes upwards http://blogs.reuters.com/felix-salmon/2009/11/09/when-demand-slopes-upwards/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: SelenesMom http://blogs.reuters.com/felix-salmon/2009/11/09/when-demand-slopes-upwards/comment-page-1/#comment-8525 Mon, 09 Nov 2009 17:06:24 +0000 http://blogs.reuters.com/felix-salmon/2009/11/09/when-demand-slopes-upwards/#comment-8525 Way back when, we were taught that this phenomenon is called “reverse demand elasticity” and applies to many luxury goods — in particular, when a consumer doesn’t have much to go on besides the price, s/he will use a price signal as an indicator of quality.

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By: Felix Salmon http://blogs.reuters.com/felix-salmon/2009/11/09/when-demand-slopes-upwards/comment-page-1/#comment-8523 Mon, 09 Nov 2009 16:47:10 +0000 http://blogs.reuters.com/felix-salmon/2009/11/09/when-demand-slopes-upwards/#comment-8523 John, where did I write that?

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By: a http://blogs.reuters.com/felix-salmon/2009/11/09/when-demand-slopes-upwards/comment-page-1/#comment-8522 Mon, 09 Nov 2009 15:12:16 +0000 http://blogs.reuters.com/felix-salmon/2009/11/09/when-demand-slopes-upwards/#comment-8522 It’s not conspicuous consumption; it’s a fear of what is in that two-dollar bottle of wine. The same instinct might cause you to steer clear of a 45-cent hamburger: if the price is that low, it’s bound to be wretched. At a slightly higher price, you can at least hope for a better quality good.

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By: Jon H http://blogs.reuters.com/felix-salmon/2009/11/09/when-demand-slopes-upwards/comment-page-1/#comment-8520 Mon, 09 Nov 2009 14:39:11 +0000 http://blogs.reuters.com/felix-salmon/2009/11/09/when-demand-slopes-upwards/#comment-8520 I have a hunch that significant medical procedures will behave the same way. If it’s more expensive, it must be better/more advanced/more effective/better surgeons. If it’s cheaper, the surgeon must be a hack with a degree from a Caribbean diploma mill, or be using worn-out equipment, or outdated procedures, or whatever.

That’s why I don’t think the answer to controlling healthcare costs is simply to expose patients to the prices and let them choose.

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By: John Brewster http://blogs.reuters.com/felix-salmon/2009/11/09/when-demand-slopes-upwards/comment-page-1/#comment-8519 Mon, 09 Nov 2009 14:15:02 +0000 http://blogs.reuters.com/felix-salmon/2009/11/09/when-demand-slopes-upwards/#comment-8519 Let the record show that you, Felix, were a strong signatory in 2009 to the false belief that the US “cannot default on its debt because its debt is in dollars and it can simply print dollars.”

Now that 6 months have passed since you more habitually spouted this internally flawed argument, do you finally see the problem with this view?

Let me help you out: the US started to willfully default on its debt when the FED made the decision to monetize debt, thus functionally monetizing a portion of the operating budget. The result was fated to be recorded eventually in the currency, and in gold, and you are seeing that now.

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By: Atrios http://blogs.reuters.com/felix-salmon/2009/11/09/when-demand-slopes-upwards/comment-page-1/#comment-8518 Mon, 09 Nov 2009 13:41:48 +0000 http://blogs.reuters.com/felix-salmon/2009/11/09/when-demand-slopes-upwards/#comment-8518 either they’re Veblen goods, or quality is uncertain and price is seen as strong enough signal of quality. or some combination.

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By: Fred Engels http://blogs.reuters.com/felix-salmon/2009/11/09/when-demand-slopes-upwards/comment-page-1/#comment-8511 Mon, 09 Nov 2009 12:46:12 +0000 http://blogs.reuters.com/felix-salmon/2009/11/09/when-demand-slopes-upwards/#comment-8511 So what you call the fact that when prices for financial assets go up demand increases?

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By: Casper http://blogs.reuters.com/felix-salmon/2009/11/09/when-demand-slopes-upwards/comment-page-1/#comment-8508 Mon, 09 Nov 2009 12:16:18 +0000 http://blogs.reuters.com/felix-salmon/2009/11/09/when-demand-slopes-upwards/#comment-8508 Your celebrity status is making your head swim, Salmon.

Very funny comments that made my jobless snobless day.

For the maths boffins, from what I recall:- these are supply and demand curve intercepts, not straight lines, and these shift around, quite correct. One could almost call it the ‘Efficiency Frontier’ of Investment Theory 101. Water to wine

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By: Neil D http://blogs.reuters.com/felix-salmon/2009/11/09/when-demand-slopes-upwards/comment-page-1/#comment-8507 Mon, 09 Nov 2009 09:55:03 +0000 http://blogs.reuters.com/felix-salmon/2009/11/09/when-demand-slopes-upwards/#comment-8507 It is conspicuous consumption to the insecure buyer.

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By: Neil D http://blogs.reuters.com/felix-salmon/2009/11/09/when-demand-slopes-upwards/comment-page-1/#comment-8506 Mon, 09 Nov 2009 09:51:55 +0000 http://blogs.reuters.com/felix-salmon/2009/11/09/when-demand-slopes-upwards/#comment-8506 Conspicuous consumption. The higher price demonstrates the wealth and status of the consumer. It’s just like jewelry.

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