You could have a worker that faced a situation that if we doesn’t lower his pricer all the customers will go to the competitors. If people were completely farsighted and could factor in everything they would close shop immidietly. But it isn’t unheard off to run an activity a little while with loss or run it by overworking oneself outside of ones capacity. There are uncertainties and closing and opening a shop isn’t neccesarily frictionless. But that fricton can mask an area where activity is kept for inertias sake while actually being a little bit of burden.
Doing all the risk adjusments and opportunity costs and everything correctly is cognitively very challenging. Trusting that everybody does every decision always correctly might be handy for mathematical ideal land but for limited cognition agents it just means that everybody has a story how their deal makes sense. And like nobody is the villain of their story, everybody is the mastermind of their business. It doesn’t mean that everybody is a saint or that all business is suistainable.
You impose no such cost, as those willing to exchange your money for their services do so profitably.
It is possible to trade oneself to be bankcrypt.
You could have a worker that faced a situation that if we doesn’t lower his pricer all the customers will go to the competitors. If people were completely farsighted and could factor in everything they would close shop immidietly. But it isn’t unheard off to run an activity a little while with loss or run it by overworking oneself outside of ones capacity. There are uncertainties and closing and opening a shop isn’t neccesarily frictionless. But that fricton can mask an area where activity is kept for inertias sake while actually being a little bit of burden.
Doing all the risk adjusments and opportunity costs and everything correctly is cognitively very challenging. Trusting that everybody does every decision always correctly might be handy for mathematical ideal land but for limited cognition agents it just means that everybody has a story how their deal makes sense. And like nobody is the villain of their story, everybody is the mastermind of their business. It doesn’t mean that everybody is a saint or that all business is suistainable.