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RE: RE: SPS Governance Proposal - Raise the SPS Rental Floor Price

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RE: SPS Governance Proposal - Raise the SPS Rental Floor Price

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oaaguy(59)

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2024-12-11 02:47

Not a fan of price floors...

Any economics 101 textbook would confidently predict that fewer total SPS gets rented. Instead there's a sizable deadweight loss of SPS owners that would prefer to rent below the artificial floor rather than stay unrented.

conceptually if a natural equilibrium is 1800 units at $8, but price floor reduces demand to 1400, that's a net loss to the economy as a whole...

To get a higher equilibrium, you need to increase demand.

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2024-12-11 02:47

oaaguy(59)

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