Latest edentiti news
Economics in an age of abundance
By Kevin Cox on April 29, 2008 3:09 AM | Permalink | Comments (0)
Traditional economic theory is built around the idea of scarcity and consumer choice through competitive markets. The theory says that markets work because when goods are scarce, price contains all the information that a consumer needs to make an informed choice This makes it possible for a person to not only rationally choose to buy from a particular supplier, but to choose between different types of products. Unfortunately in the modern market place the assumptions about scarcity and prices reflecting value do not apply. In a modern economy there are many situations where prices fail to reflect cost or value....
