Its a theory of mine based on some psych experients of how much of an incremental price hike people will blindly accept without protest.


People will accept price hikes up to 40% without a fight. ITs as if we are wired that way.

The price of gas for example will go up 40% because the prices are fixed by refineries controlling the supply AND marketers know that a 40% hike will meet no real resistence. SO it will happen.

Its like the magic number that keeps the frog from knowing he is getting boiled to death.

OF course in a free market certain monopolies will notice a drop in growth once most of their customers get priced out of the market at certain point.