tag:blogger.com,1999:blog-3143724362136202099.post5053884927731889161..comments2024-02-13T14:25:06.949-05:00Comments on the bottlenecked blog: Takeaways from Predictably Irrational, Part IHarrison Brookiehttp://www.blogger.com/profile/05372315442336546216noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-3143724362136202099.post-58452896586302598952010-09-28T14:50:23.051-04:002010-09-28T14:50:23.051-04:00If you're interested in more on the last point...If you're interested in more on the last point you should read (or listen to) <i>Free</i> by Chris Anderson. Appropriately, the audiobook version is free.Justin Scotthttps://www.blogger.com/profile/01411501808890179703noreply@blogger.comtag:blogger.com,1999:blog-3143724362136202099.post-9909220795001993102010-09-27T18:19:56.263-04:002010-09-27T18:19:56.263-04:00Great point Bryan. I'll put this in my email I...Great point Bryan. I'll put this in my email I'm forming to the author.Harrison Brookiehttps://www.blogger.com/profile/05372315442336546216noreply@blogger.comtag:blogger.com,1999:blog-3143724362136202099.post-27572645239430924052010-09-27T15:44:45.225-04:002010-09-27T15:44:45.225-04:00"One of the most basic economic assumptions, ..."One of the most basic economic assumptions, the law of demand, states that as price goes up, consumers buy less. How much of that is not based on rational trade offs, but instead on the memory of the initial price paid?"<br /><br />You could look at long-run price elasticity versus short run price elasticity. If people reacted based only on memory, then the reduction of purchases would not last. But in fact we observe the opposite, long-run elasticities are higher implying that people don't get used to the price increases, they adjust more as they go.Bryanhttps://www.blogger.com/profile/07376207176772742664noreply@blogger.com