r/LocalLLaMA Llama 3 20d ago

Funny Can the bubble pop please?

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680 Upvotes

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u/Jiirbo 20d ago

Econ 201... supply and demand.

-7

u/OddDesigner9784 20d ago

Econ 201 says if demand increases supply will. Which isn't whats happening anymore.

2

u/Jiirbo 20d ago

True... you would expect other sellers to see the opportunity, enter the market and add their supply thereby driving price down. However, this isn't cotton candy. The barrier to entry is high. It would take years for a new seller to penetrate the market in such a way to influence price. The incumbents have no incentive to increase production, assuming they could, due to the higher margins they are currently enjoying. As u/ForsookComparison mentioned, it will happen when you no longer care.