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10-29-2010 @ 2:53PM
I think the analysis of profit vs # sellers that have been mentioned in these comments is based solely on assumptions of rational actors all motivated by the same factors. I think that those assumptions fail in at least some extent.For instance, an actor for whom opportunity cost is nonexistent (or equivalently, not considered) will have a greater effect upon prices than several who do not.Similarly, a single actor who does not consider profit a motive can drive prices to or below opportunity costs. This includes both attempting to drive other actors out of the market as well as people simply desiring to control the market.I'm not a trained economist, though, so that's as far as I'm willing to take these thoughts. Maybe you folks HAVE considered them, and I just missed the signs.
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