3 ms·
If demand peaks at t=0, the second market sellers are going to buy out the entire supply early where demand and price are the lowest, and then use economic hold
by bduerst 11y ago
If demand peaks at t=0, the second market sellers are going to buy out the entire supply early where demand and price are the lowest, and then use economic hold up to inflate their prices even further. All you're doing with this system is guaranteeing that consumers who want to pay a lot of money early on are guaranteed to do so.
Considering that this is an imperfect market and the second market sellers are more knowledgeable, average consumers are going to the ones paying out here, not the resellers.