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> Many times the farmers are given such a low ball offer, that is basically expecting them to sell for loss. The farmer does the obvious. Takes their produce, d
by zeroname 8y ago
> Many times the farmers are given such a low ball offer, that is basically expecting them to sell for loss. The farmer does the obvious. Takes their produce, dump in a lake near by as garbage, because it often doesn't economic make sense to take it back.
That doesn't make any economic sense either. How is "selling at a loss" (i.e. taking in less money than it costs to produce) worse than dumping the produce (taking in no money whatsoever)?
There has to be some other factor at play here.
- kamaal 8y ago>>How is "selling at a loss" (i.e. taking in less money than it costs to produce) worse than dumping the produce (taking in no money whatsoever)? I guess its just a way of saying they won't negotiate to sell at low prices ever. Because once you do, people use it as precedence to bargain again. Also stifle the supply to some extent and the next time around the demand goes up.
- selimthegrim 8y agoThey don’t want a “kick me” sign on their back?
- zeroname 8y agoI guess "spite" might be an underappreciated factor of real-world (un-)economics.