Exactly. And if you can’t survive, you stop participating in the market. Which means that reasoning based on equilibria of immortal agents may or may not apply. And it seems plausible that in fact, in practice, employers basically threaten workers with starvation as a negotiating tactic.
...but only because things are rigged to favour employers. Employment is almost always a buyers market, but everybody sees that as a fact of nature. In the rare periods during which workers can bargain up their wages, that’s the demon of inflation...
Exactly. And if you can’t survive, you stop participating in the market. Which means that reasoning based on equilibria of immortal agents may or may not apply. And it seems plausible that in fact, in practice, employers basically threaten workers with starvation as a negotiating tactic.
...but only because things are rigged to favour employers. Employment is almost always a buyers market, but everybody sees that as a fact of nature. In the rare periods during which workers can bargain up their wages, that’s the demon of inflation...