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The effect described by Von Mises is exactly what leads to this aggressive behavior from large retailers. Walmart knows that the customer doesn't care about Wal
by cookiecaper 9y ago
The effect described by Von Mises is exactly what leads to this aggressive behavior from large retailers. Walmart knows that the customer doesn't care about Walmart. They go to Walmart because they believe Walmart will get them the best bang for their buck.
When Walmart sets aggressive standards for its suppliers, it does so in the interest of maintaining that position, because they know that the customer will not hesitate to switch to a retailer that they perceive as being more advantageous (which usually means cheaper).
It could even be seen as honorable that Walmart is on the ground doing the hard work of pressuring suppliers to ensure that they actually are able to offer rock-bottom prices, instead of just relying on marketing voodoo to create this as a phantom impression in the consumer's mind without actually attempting to affect it.
The system can either try to restrain this core human tendency to jump at the most advantageous thing, in the belief that such disloyalty is a primal impulse that does not belong in 'civil society', or it can attempt to recognize this tendency and account for it organically rather than ruling it out of bounds.
The extent of such tradeoffs, authoritative restriction meant to prevent damage v. organic re-routing such that damage is minimally disruptive, is always a matter of context and subjective judgment. We get into political snafus when we adopt one side of this scale as an ideal with near-religiosity and overemphasize the negative costs of the opposite side.