simpler answer - incentives
[QUOTE=Evil Penivel]Discussing economic theory is always difficult, so maybe it's best to tackle the issue from another angle. When I have more time, I'll try to respond to some of the points that have been raised, but for now, I'll try a different approach.
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Actually I prefer the simpler logic as follows:
Let's say they are right, and that overpaying CAN "spoil" a market. Then those of us who have the means have every motivation to overpay, because we're just reducing the market to fewer players, and that's better for us.
Point is, if the fallacy is true then they are actually motivating us to act in a way that would be detrimental to them. So if you really think those of us that "overpay" are ruining your market, you really ought to keep quiet about it!! Totally ironic, no?
But of course it's totally junk economics and the market doesn't work anything like that. In fact, as I explained before, "overpaying" (or paying more than the average customer might) actually helps everyone in the market, even those without the means to overpay, by attracting more girls to the market and creating the aura of possibility that ANY one of us could turn out to be their lottery ticket.
As is demonstrated here, those who disagree will complain about this to no end, ad hominem and ad naseum, no matter how much logic you give them to show their beliefs about how the market works are wrong. It serves a greater purpose to them than does reality.
-B-