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Are you seriously using water in your example? The one resource that in most communities you can practically get for free. (that's not to say water itself has n

Are you seriously using water in your example? The one resource that in most communities you can practically get for free. (that's not to say water itself has no monetary value, but you cannot deny the fact that even the most destitute individuals in communities with access to fresh water will not die of thirst.)

nickff 10y ago
I pointed out the logical fallacy in the parent's example. Look at the water version of their paragraph: 'In [thirst], there are lots of situations where the cost is X dollars vs literal death. Of course, death is not an acceptable alternative, so an acceptable X ends up being very, very high for the [bottled water]. Most people would pay their life savings to treat themselves of [thirst].' The parent 'proved too much'; there are many situations where a good or service is required for survival, but that alone does not cause the price to rise. The lack of alternatives (I.e. defensible monopoly) is what causes high prices.
titzer 10y ago
Actually, I think bottled water is a really interesting example of how irrational people are, which leads the free market to many suboptimal solutions. The basic question is why people spend $1-3 for a bottle of water that is worse quality than tap water, which is 100x-1000x cheaper? The answer has a lot to do with non-price factors like convenience, social conventions, social status, false perceptions of added value, habit, etc.
- nickff 10y ago
  Worse quality than tap water? You've obviously had less 'boil water advisories' than I have. I actually used bottled water for the example because it is easy to visualize and synonymous with potable water. I was recently on an island with 'tap water' which had poisonous levels of arsenic, so tap water seemed like a bad example.
- calgoo 10y ago
  I don't know where in the world you live, but I can guarantee that the tap water here in Barcelona is a lot worse then the bottles I buy. Just the amount of chlorine stinks worse then a pool, and then there is all the other crap that is in there.
- projektir 10y ago
  Given the reports of contaminated water all over the US that has been on HN recently, I'm not sure how irrational those people really are.
- TeMPOraL 10y ago
  Regarding the other responses to your comments - it only show how disconnected the practice of buying bottled water is from any real benefits. I live in a city where tap water is held to higher health standards than bottled water, and people still buy the bottles.

nickff 10y ago

I pointed out the logical fallacy in the parent's example. Look at the water version of their paragraph: 'In [thirst], there are lots of situations where the cost is X dollars vs literal death. Of course, death is not an acceptable alternative, so an acceptable X ends up being very, very high for the [bottled water]. Most people would pay their life savings to treat themselves of [thirst].' The parent 'proved too much'; there are many situations where a good or service is required for survival, but that alone does not cause the price to rise. The lack of alternatives (I.e. defensible monopoly) is what causes high prices.

titzer 10y ago

Actually, I think bottled water is a really interesting example of how irrational people are, which leads the free market to many suboptimal solutions. The basic question is why people spend $1-3 for a bottle of water that is worse quality than tap water, which is 100x-1000x cheaper? The answer has a lot to do with non-price factors like convenience, social conventions, social status, false perceptions of added value, habit, etc.

nickff 10y ago
Worse quality than tap water? You've obviously had less 'boil water advisories' than I have. I actually used bottled water for the example because it is easy to visualize and synonymous with potable water. I was recently on an island with 'tap water' which had poisonous levels of arsenic, so tap water seemed like a bad example.
calgoo 10y ago
I don't know where in the world you live, but I can guarantee that the tap water here in Barcelona is a lot worse then the bottles I buy. Just the amount of chlorine stinks worse then a pool, and then there is all the other crap that is in there.
projektir 10y ago
Given the reports of contaminated water all over the US that has been on HN recently, I'm not sure how irrational those people really are.
TeMPOraL 10y ago
Regarding the other responses to your comments - it only show how disconnected the practice of buying bottled water is from any real benefits. I live in a city where tap water is held to higher health standards than bottled water, and people still buy the bottles.