4 ms·

There is a much more effective way to prevent people from buying more than they need... limit sales to x items per buyer, or rationing. The only thing rising co

by lloda 7y ago

There is a much more effective way to prevent people from buying more than they need... limit sales to x items per buyer, or rationing. The only thing rising costs ensure is that people without money don't get anything.

baryphonic 7y ago
It's not so simple. What do you say to the family with seven kids who also has grandma and grandpa living at home? Do they get only one bottle of sanitizer the same as the college student? For some people, time is more valuable than money; for others, the opposite is true; and in even other cases, other structural issues will make fairness very difficult to achieve. Someone will lose out in all of these scenarios, and therefore it's quite difficult to evaluate which regime is preferable to the others in all cases.
- crazygringo 7y ago
  For a store it really is that simple, and they do it all the time with really good sales (esp. loss-leaders). The "preferable" regime is whichever one is easy to implement, appears fair, and ensures primarily that the store has a reputation for things being in-stock even when on sale. Which is usually max 1, 2 or 4 per customer. If you really want more, you can usually put them in your car, go back in, get in line again and pay again. If you do this more than two or three times, a manager will probably ask you to stop and prevent any further. But you can always come back tomorrow. It works pretty well. People who really need double or triple can get it with just a little extra work, but it absolutely prevents people from clearing out the store's stock in a single, quick easy transaction.
  - baryphonic 7y ago
    This response did not answer the core question of my comment: any allocation scheme will choose winners and losers, so how do you pick which is worse? I see an assertion that rationing via quotas is "simple and fair," but it's not clear at all that it is more fair. What is "fair," and according to whom? Certainly the mother with seven kids and elderly parents in the home, she'd find the "go through the line, go to your car and go back in again" to be totally unacceptable, especially with the exceptionally long lines we've seen (it wouldn't be a "little extra work" but would involve doing nothing but waiting in line for hours). And the whole point of this article is that it's not normal times where prices can fluctuate.
    - ashwoods 7y ago
      Don’t let perfect be the enemy of good. In every game you have winners and losers, but you can try to make the game fairer for most people.
- ardy42 7y ago
  >> There is a much more effective way to prevent people from buying more than they need... limit sales to x items per buyer, or rationing. The only thing rising costs ensure is that people without money don't get anything. > It's not so simple. What do you say to the family with seven kids who also has grandma and grandpa living at home? Do they get only one bottle of sanitizer the same as the college student? It is that simple. People who legitimately need the item have the time to come back later for more, but price gougers don't have that time and need to clean the store's inventory efficiently in a short time.
  - baryphonic 7y ago
    If it is that simple, then someone should be able to simply answer the scenario I presented and why non-price rationing with fixed prices is preferable to variable price.
    - ardy42 7y ago
      > If it is that simple, then someone should be able to simply answer the scenario I presented and why non-price rationing with fixed prices is preferable to variable price. Because variable prices simply ration to the people with more money, which isn't always the best rationing scheme. For instance, for hand sanitizer to do the most good, you want it widely distributed, even to people with little money. Non-price rationing does that decently well in a crisis. The fixed prices keeps the resource affordable, while the rationing discourages hoarding (either due to fear or profiteering schemes). Variable pricing encourages hoarding, as fearful but wealthy are allowed hoard they reasonable need and "entrepreneurs" hoard to flip the resource to the first group at surge prices.

by lloda 7y ago

baryphonic 7y ago

It's not so simple. What do you say to the family with seven kids who also has grandma and grandpa living at home? Do they get only one bottle of sanitizer the same as the college student? For some people, time is more valuable than money; for others, the opposite is true; and in even other cases, other structural issues will make fairness very difficult to achieve. Someone will lose out in all of these scenarios, and therefore it's quite difficult to evaluate which regime is preferable to the others in all cases.

crazygringo 7y ago
For a store it really is that simple, and they do it all the time with really good sales (esp. loss-leaders). The "preferable" regime is whichever one is easy to implement, appears fair, and ensures primarily that the store has a reputation for things being in-stock even when on sale. Which is usually max 1, 2 or 4 per customer. If you really want more, you can usually put them in your car, go back in, get in line again and pay again. If you do this more than two or three times, a manager will probably ask you to stop and prevent any further. But you can always come back tomorrow. It works pretty well. People who really need double or triple can get it with just a little extra work, but it absolutely prevents people from clearing out the store's stock in a single, quick easy transaction.
- baryphonic 7y ago
  This response did not answer the core question of my comment: any allocation scheme will choose winners and losers, so how do you pick which is worse? I see an assertion that rationing via quotas is "simple and fair," but it's not clear at all that it is more fair. What is "fair," and according to whom? Certainly the mother with seven kids and elderly parents in the home, she'd find the "go through the line, go to your car and go back in again" to be totally unacceptable, especially with the exceptionally long lines we've seen (it wouldn't be a "little extra work" but would involve doing nothing but waiting in line for hours). And the whole point of this article is that it's not normal times where prices can fluctuate.
  - ashwoods 7y ago
    Don’t let perfect be the enemy of good. In every game you have winners and losers, but you can try to make the game fairer for most people.
ardy42 7y ago
>> There is a much more effective way to prevent people from buying more than they need... limit sales to x items per buyer, or rationing. The only thing rising costs ensure is that people without money don't get anything. > It's not so simple. What do you say to the family with seven kids who also has grandma and grandpa living at home? Do they get only one bottle of sanitizer the same as the college student? It is that simple. People who legitimately need the item have the time to come back later for more, but price gougers don't have that time and need to clean the store's inventory efficiently in a short time.
- baryphonic 7y ago
  If it is that simple, then someone should be able to simply answer the scenario I presented and why non-price rationing with fixed prices is preferable to variable price.
  - ardy42 7y ago
    > If it is that simple, then someone should be able to simply answer the scenario I presented and why non-price rationing with fixed prices is preferable to variable price. Because variable prices simply ration to the people with more money, which isn't always the best rationing scheme. For instance, for hand sanitizer to do the most good, you want it widely distributed, even to people with little money. Non-price rationing does that decently well in a crisis. The fixed prices keeps the resource affordable, while the rationing discourages hoarding (either due to fear or profiteering schemes). Variable pricing encourages hoarding, as fearful but wealthy are allowed hoard they reasonable need and "entrepreneurs" hoard to flip the resource to the first group at surge prices.