“What did you know and when did you know it?”I always thought of this formulation as about politics not knowledge and certainly not economics. This relationship is even more critical in understanding housing prices in markets experiencing lots of growth and demand for housing products. If housing proliferates because of increased production they will have to lower their prices. The situation is somewhat like agreeing to play a game based partly on skill and partly on luck. The rules of the game ensure that at the price such that each individual’s share is left more or less to chance, the real equivalent of each individual’s share, depending partly on chance, becomes as large as possible.

Source: Forbes October 30, 2017 13:30 UTC