AddAdamSmith
Chieftain
- Joined
- May 8, 2025
- Messages
- 2
Econ101 doesn’t explain everything, but it provides useful building blocks for understanding the behavior of actors in a market."I am going to ignore not only this thread, but the pricing strategies that firms actually use to set prices, and instead try to apply what I learned in college economics to a situation in which these theories do not apply in any sensible way unless your entire way of thinking is based on applying economics to everything"
The last few posts are just a fun example of a topic that usually doesn’t have fun examples and resorts to talking about student discounts and dynamic airline pricing. When people say things like “I don’t think it’s worth $120, so I’ll wait for the Steam Sale”, that’s a perfect example of willingness to pay! When you talk about price-setting without independent of other suppliers are selling at, that’s treating it as a monopoly!
The real world is more complicated that Econ 101 because there are few perfectly-competitive markets and few true monopolies, but everyone on this page has already implicitly assumed that Firaxis is a monopoly, and therefore only needs to find a price at which their revenue is maximized. If that’s the case, then obviously they should rationally be engaging in price discrimination, and they are!