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richardhutnik on 25 October 2011
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Kasz216 said:
SamuelRSmith said:
Kasz216 said:

Austrian economics while smart to move away from falsely created economic models they seem to do little actual qualitative research.

Really economic theory should not be one global one size fits all theory but should be broken up basically by the cultures of diffeernt geographical "economic zones".

As consumers in different areas will act differently to the same events.


Not agreeing or disagreeing, here, but could you give some examples?

In smaller strokes yeah.

For example... in my Consumer Psychology class my proffessor talked about a big McDonalds opening in Moscow. it was one of the first McDonalds there, and it was HUGE.  Had 5 Cashiers so there would be no wait.

It did poor buisness and they had to cut the cashiers down to 2.... and then the strangest thing happened.   Buisness greatly increased.

Due to how the USSR used to be, there used to be LOOOOOOONG lines that would take hours to get to the end of, they were so long it often wasn't worth it to go to the front of the line to see what they were giving away because so many people would end up lining up ahead of you.


So they devleoped a habit of just picking the longest line they could find because the longer the line meant the more valuable the product being given away.  If you already had it you could trade it for what you did need.

And that is one case where social customs end up not being good for the economy.