There seems to be some confusion. When we say “money pump” we are talking specifically about the dutch book. We aren’t listing (arguably) inefficient ways to spend money.
You do, but saying fashion is a money pump because you need to keep spending money to stay in fashion is like saying that grocery stores are a money pump because you need to keep spending money to not starve.
Oh, sorry, I wasn’t saying fashion is a money pump, just noting that it’s a problem for agents who’s preferences change with the passage of time; just like needing to purchase food is something most people would avoid, if possible.
You still lose money, though.
There seems to be some confusion. When we say “money pump” we are talking specifically about the dutch book. We aren’t listing (arguably) inefficient ways to spend money.
Oh, indeed! I was just noting that preference change over time is a problem, not the same problem as money pumps.
You do, but saying fashion is a money pump because you need to keep spending money to stay in fashion is like saying that grocery stores are a money pump because you need to keep spending money to not starve.
Oh, sorry, I wasn’t saying fashion is a money pump, just noting that it’s a problem for agents who’s preferences change with the passage of time; just like needing to purchase food is something most people would avoid, if possible.
Fashion isn’t so much about changing preferences as people engaging in signaling games.
True. The problem exists, though, even if the example isn’t a terminal preference.