2 ms·
If their pricing decision creates a shortage, that meets the technical definition of an artificial shortage. The term doesn't necessarily have a negative connot
by robotresearcher 11y ago
If their pricing decision creates a shortage, that meets the technical definition of an artificial shortage. The term doesn't necessarily have a negative connotation.
In the steady state a market 'naturally' balances supply and demand through pricing. If you choose not to do that, the effects you create are 'artificial'.
- mikeash 11y agoIt doesn't make sense to me to apply the word "shortage" to a situation where you're taking reservations for a product that isn't yet released. Their steady state for the past couple of years has been a wait of a month or two from order to delivery (for American customers, people overseas have to wait a lot longer for transportation) which doesn't seem like it would be in the realm of "shortage" for a car.