Pricing Power : The phenomenon where the value of money falls below the price of goods is called inflation , and it is said we are currently in an era of inflation. However, it’s not that simple. Inflation is realistically characterized by prices not rising all at once during an inflationary period but rather increasing rapidly for some items and slowly for others over several years. This phenomenon is known as the ‘ Cantillon Effect .’ In other words, inflation is neither uniform nor regular. Conversely, when prices fall below the value of money, it is referred to as deflation . To survive deflation, companies must innovate, often by reducing costs and expenses. During inflation, rising costs must be passed on to other economic agents through increased prices, a concept known as Pricing Power. Since companies cannot pass on all the rising costs, many go bankrupt during periods of inflation. - Joseph’s “just my thoughts”
British anthropologist Robin Dunbar was certain that primate cerebral neocortical capacity determines the number of social relations. He definitively established the limit of human relationships at 100 to 230 people. The average value of 150 people is known as Dunbar's number. In the world of chimpanzees, 30 is the absolute maximum. However, fewer than 12 people in the world can sympathize with me. My best friend is now reduced to 3 or 4. The relationship quantity decreases to the square root value and increases to the square value. Three or four of my best friends will eventually connect with people from all over the world. This is the same principle as when one or two virus-infected people infect the world. Focus on your best friend. - Joseph’s “just my thoughts”