Hacker News Reader

> The market is efficient.

The market is more efficient, on average, than other methods of price setting. It’s not perfect efficiency (or even close to it).

Supply and demand are always in flux, and the repeated attempts to match these is what causes market efficiency. It is frequently possible that prices are not keeping up with supply and demand, and there exists arbitrage opportunity that requires people knowledgeable about the market to act on.

> if it was profitable to charge more and pay workers more, why doesn't anyone just start a company that does that and outcompete the others?

They do (sans outcompeting). We just call them luxury goods. It's a different market.