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0 pointsikeboy5y ago0 comments

Price takers still get value, since the price they're taking is above their reservation price. The employer may capture more of the total surplus if they have market power.

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anigbrowl5y ago· 1 in thread

I don't regard that as value; your reservation price is what you can't afford to go below, not what you want.

ikeboyOP5y ago

Of course you don't want the reservation price; a transaction at that price provides no value to you by definition.

You prefer a transaction at a higher price to one at the reservation price. Satisfying that preference is valuable.

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