Ateneo Professor on Entrepreneurship
Rizal Philippines | December 31, 2013
There is a shortage of buko before new year. The price has escalated more than oil prices?
Blame it on Bukonomics ( and bikeconomics)
In Leyte, there was this Yeronomics; the price of roofing went up 2x because of the scarcity of GI sheets.
If you understand this, you understand economics - wise and efficient use of scarce resources. And when they are scarce, the price goes up. Thus you can raise prices by creating artificial shortage.
Thus when marketing people in Ferrari says that the potential demand for a Ferrari model is 2, 000, he orders his factory to produce 300, he doubles the price and there is a long line of waiting buyers. What is that Ferrarinomics?
You call that wise. Smart. Entrepreneurial. Opportunity seizing
Less is really more.
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