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I view this as simple arbitrage. There's an opportunity to take and you take it first.... Lots of other comments somehow point to the fact that this is parasiti

by anonu 11y ago

I view this as simple arbitrage. There's an opportunity to take and you take it first.... Lots of other comments somehow point to the fact that this is parasitic behaviour. Well, this is human behaviour. Here's an even simpler credit card point arb: http://www.creditcards.com/credit-card-news/mint-closes-loophole-ends-credit-card-coin-sales-frequent-flyer-flier-miles-1263.php http://www.creditcards.com/credit-card-news/mint-closes-loop... The story in a nutshell: "On July 22, 2011, the U.S. Mint said it was ending credit and debit card sales of $1 coins because of "individuals purchasing $1 coins with credit cards, accumulating frequent flier miles, and then returning coins to local banks ... While not illegal, this activity was a clear abuse and misuse of the program."

mikeash 11y ago
I can't understand calling this "parasitic." Doesn't that imply that what's going on is somehow against the will of whatever you're exploiting? If a company sets up a promotion, it's their responsibility to ensure that the terms are favorable to them. If they screw it up then they should have thought it through some more. Loss leaders are a time-honored way to attract customers, but anyone who uses them must be aware that sometimes the "loss" in "loss leader" is all you get. You either need to make your terms accordingly, or bet on the average being beneficial even if you lose out on some individuals.
- claudius 11y ago
  > If a company sets up a promotion, it's their responsibility to ensure that the terms are favorable to them. If an animal sets develops a new organ, it is its responsibility to ensure that the functionality of the organ is favourable to them. If it screws it up and a worm infects that organ, then it should keep evolving a bit more. Of course this is a somewhat trivially true statement, but it doesn’t change the fact that the worm is parasitic.
  - mikeash 11y ago
    That analogy makes no sense, what with evolution having no volition or intelligence.
    - pavel_lishin 11y ago
      Also, it's not really showing their point well - the reason we're here is because our various historic genetic cousins and such died off because they weren't able to adapt, and we were lucky enough to.
- FireBeyond 11y ago
  The Mint has to pay credit card processing fees for these sales. That's one thing as a cost of business to one of their stated aims, putting currency in circulation, but another altogether if it's just a round trip for no net gain.
  - mikeash 11y ago
    Maybe they should have figured out a better way to accomplish this goal, then.

by anonu 11y ago

mikeash 11y ago

I can't understand calling this "parasitic." Doesn't that imply that what's going on is somehow against the will of whatever you're exploiting? If a company sets up a promotion, it's their responsibility to ensure that the terms are favorable to them. If they screw it up then they should have thought it through some more. Loss leaders are a time-honored way to attract customers, but anyone who uses them must be aware that sometimes the "loss" in "loss leader" is all you get. You either need to make your terms accordingly, or bet on the average being beneficial even if you lose out on some individuals.

claudius 11y ago
> If a company sets up a promotion, it's their responsibility to ensure that the terms are favorable to them. If an animal sets develops a new organ, it is its responsibility to ensure that the functionality of the organ is favourable to them. If it screws it up and a worm infects that organ, then it should keep evolving a bit more. Of course this is a somewhat trivially true statement, but it doesn’t change the fact that the worm is parasitic.
- mikeash 11y ago
  That analogy makes no sense, what with evolution having no volition or intelligence.
  - pavel_lishin 11y ago
    Also, it's not really showing their point well - the reason we're here is because our various historic genetic cousins and such died off because they weren't able to adapt, and we were lucky enough to.
FireBeyond 11y ago
The Mint has to pay credit card processing fees for these sales. That's one thing as a cost of business to one of their stated aims, putting currency in circulation, but another altogether if it's just a round trip for no net gain.
- mikeash 11y ago
  Maybe they should have figured out a better way to accomplish this goal, then.