Eric Crampton wrote:
>
> Reflection of time preference. When the things first came out, the time
> at which one could be expected to be had at the stores was far off. Now,
> it's not so far off and so prices are lower. Will converge down to
> MSRP....
You don't even need time preference. Consider for example a billionaire
with no time preference (beta=1). He values his Playstation at a
constant $10,000/month. Thus, even without time preference, he'd pay
$20,000 to get the Playstation two months sooner.
--
Prof. Bryan Caplan
Department of Economics George Mason University
http://www.bcaplan.com [EMAIL PROTECTED]
"A man should be sincere, and nobly shrink
From saying anything he does not think."
-- Moliere, _The Misanthrope_
