causal

Businesses Are Too Different to Average for Pricing

Economists struggle with price stickiness because businesses are so different they are hard to average; much pricing strategy is 'aesthetics,' which is either an entire career of knowledge compressed into intuition or completely made up, and inflation tracking showed price-following behavior differed sharply by product type, margins, and how people consider buying.

causalpending

Speaker

Tobi Lütke

Evidence Quote

their pricing strategy is aesthetics. Aesthetics is one of those hand waves that humans do to explain away enormous amount of background processing

Source

Tobi LütkeConversations with Tyler
Created: 6/13/2026, 3:32:50 AM

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