Comments on: On fixed costs and The Tyranny of the Market http://goodmorningeconomics.wordpress.com/2007/10/04/on-fixed-costs-and-the-tyranny-of-the-market/ Thoughts on economics and political economy from two students at the University of Washington Mon, 06 Oct 2008 18:21:57 +0000 http://wordpress.org/?v=MU hourly 1 By: cdfox http://goodmorningeconomics.wordpress.com/2007/10/04/on-fixed-costs-and-the-tyranny-of-the-market/#comment-731 cdfox Sun, 07 Oct 2007 19:36:48 +0000 http://goodmorningeconomics.wordpress.com/2007/10/04/on-fixed-costs-and-the-tyranny-of-the-market/#comment-731 "...perhaps more poor people have out-of-the-mainstream needs and desire..." It seems really strange to me that the propensity for having niche tastes would be connected at all with income. Of course, it is the better off who are more likely to be willing to pay the premium to get niche products. Also, straying a bit from the static preferences assumed in economics, doesn't it take some time and energy to develop niche tastes? So that not only are the wealthy more likely to indulge their craving for fine cheese, their higher income makes it more likely that they will develop the craving in the first place. Of course, I'm assuming here that people have niche tastes only because they explore new goods. You were mentioning niche tastes inherited through culture. I suppose I could see a niche taste-income connection there, if marginalized cultures tend to have both niche tastes and lower income. “…perhaps more poor people have out-of-the-mainstream needs and desire…”

It seems really strange to me that the propensity for having niche tastes would be connected at all with income. Of course, it is the better off who are more likely to be willing to pay the premium to get niche products. Also, straying a bit from the static preferences assumed in economics, doesn’t it take some time and energy to develop niche tastes? So that not only are the wealthy more likely to indulge their craving for fine cheese, their higher income makes it more likely that they will develop the craving in the first place.

Of course, I’m assuming here that people have niche tastes only because they explore new goods. You were mentioning niche tastes inherited through culture. I suppose I could see a niche taste-income connection there, if marginalized cultures tend to have both niche tastes and lower income.

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