Prices Shape Preferences: New Equilibrium Theory Unveils Consumer Behavior Secrets
Prices can affect what people want to buy. Some researchers looked at how this works in a model of how people make choices about what to buy. They found that there is a balance point where prices and preferences match up. This balance point is stable and unique, meaning it doesn't change much and there is only one of them. Other researchers have also studied this idea and found similar results.