TemutheeChallahmet [none/use name] to chat • 2 months agoNot to defend YIMBYS but isn't this a business-illiterate take? Companies are incentivized to bring their per-unit cost down to charge less to sell at higher volumes.imagemessage-square9 fedilinkarrow-up124
arrow-up124imageNot to defend YIMBYS but isn't this a business-illiterate take? Companies are incentivized to bring their per-unit cost down to charge less to sell at higher volumes.TemutheeChallahmet [none/use name] to chat • 2 months agomessage-square9 Commentsfedilink
minus-squareFrank [he/him, he/him]hexbear22·2 months agoIf all the companies building houses form a cartel they don't need to lower prices as supply increases. link
minus-squareTemutheeChallahmet [none/use name]hexagonhexbear11·edit-22 months agoThat's a good argument but not the one the OP is making. The other thing is that there is still a ceiling on how many total people will rent a place monthly at a certain price, and there is a bigger customer pool when the price is lowered. link
If all the companies building houses form a cartel they don't need to lower prices as supply increases.
That's a good argument but not the one the OP is making. The other thing is that there is still a ceiling on how many total people will rent a place monthly at a certain price, and there is a bigger customer pool when the price is lowered.