Mean Reversion Christmas Trees, from Zubin al Genubi
Each year Christmas trees arrive on our island in containers.
One year they ran out right after Thanksgiving and there was a scramble for trees.
The next year everyone brought in an extra supply of trees.
That year the lots were full of trees on Christmas.
And so it goes back and forth every year.
This year the prices shot up noticeably.
And so it goes with markets as well.
Comments
Rod Clifton on December 11, 2019 3:55 pm
One might think it should be fairly easy to estimate demand for Christmas trees on an island, assuming the population is fairly stable.
Tom on December 13, 2019 1:36 pm
this is the cobweb theorem at work!