I remember being taught economics in high school and accepting all of the concepts they taught me without much critical thinking. Things like supply vs demand curves, completely rational economic entities, and all sorts of other idealized notions of financial decision making. I felt like it was all true and the discrepancies I saw were just random noise in the data.
Then, in college, I participated in an economic study where you won $20 if you ended with the highest total fake money of anyone in the room. The original study had a series of variants of runs where you either give $1 to each person in the room, or keep $2 for yourself. Since only the top player got anything, I kept it all the whole time and won. Professor called me up and used me as a poster child to show how the study exposed the inherit rational selfishness of the average person. I pointed out that if he had run the study as originally designed, I would have given the other people $1 every time, but since they changed the rules there was no reason to. He got so angry at me.
Kind of opened my eyes a bit as to how none of what I learned actually holds up. Kroger will raise prices during a worldwide pandemic because they know people will think it costs them more money to source food and accept higher prices, and when the pandemic dies down prices still remain. If you aren’t paying for an app then the developers are making money by selling your data, but if you do pay for an app they are doing the same thing. If you want to watch something without advertisements then obviously you have to pay for it, but if you pay for it you still have to watch advertisements anyway.
So you think the rational consumers continue to use these products because they have no choice, but in almost every instance they do have a better choice, they just don’t engage their brain at all. For example, cartridge razors cost a lot of money. Last one I bought was like $70 with four head replacements. They are always adding another blade, for maximum closeness! What’s the alternative? They’ve long since perfected the safety razor designed back in 1880. You can get one for $20, and a pack of hundreds of replacement blades for $5. I tried ten different blade brands and shaving cream setups, and every single one got a closer shave with less razor burn than the dozen cartridge razors I tried, even with no shaving cream at all. They’re cheaper, more effective, take up less space, and require less trips to the store. So why doesn’t anyone use safety razors? A combination of marketing and the fact that they just don’t feel like trying it, even after being told all of this.
Nothing is rational on either side. Companies charge whatever they feel like, consumers operate on a hair trigger, no one is ever held accountable because “You can’t really blame them” when of course I can. Life is chaos, and we live in a madhouse.
This wasn’t intended to be a long rant, I swear.