Comment on Ask HN: When will car prices normalize?parentComments−amelius4yWhen some people wants one, and there aren't enough, suddenly everyone wants one. Herd mentality.Rational behavior: better get one before the prices go up more.−throw0101a4yWorks the the other way too: lowering prices causes people to wait to buy, which causes production slowdowns, causes layoffs, causes fewer people making purchases, causes price cuts.* https://en.wikipedia.org/wiki/Deflation#Deflationary_spiral
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Rational behavior: better get one before the prices go up more.
Works the the other way too: lowering prices causes people to wait to buy, which causes production slowdowns, causes layoffs, causes fewer people making purchases, causes price cuts.
* https://en.wikipedia.org/wiki/Deflation#Deflationary_spiral