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Price gouging is the practice of using outsized leverage in a particular market to charge excessive prices. Like snow shovels doubling in price after a snow sto
by ballenf 6y ago
Price gouging is the practice of using outsized leverage in a particular market to charge excessive prices. Like snow shovels doubling in price after a snow storm. Or $10 water bottles after a hurricane.
So for AWS the term is arguably correctly applied.
But I'd be more worried about the market if AWS was artificially undercutting pricing because it would kill the incentive to create competitors or innovation in the space.
- sofixa 6y ago> Price gouging is the practice of using outsized leverage in a particular market to charge excessive prices. Like snow shovels doubling in price after a snow storm. Or $10 water bottles after a hurricane. > So for AWS the term is arguably correctly applied What outsized leverage have AWS had for a decade? There are multiple competitors at different levels, AWS are just better in terms of coverage/redundancy and amount of services.
- pas 6y agoThey are meaningfully better only in one thing: size = PR = network effects.
- jen20 6y ago> So for AWS the term is arguably correctly applied. Can you elicit the argument by which this is correctly applied?
- ballenf 6y agoPoint was just that having the "price on the tin" is irrelevant to whether there's price gouging going on. But, I guess the argument could be similar to the case against Apple for its iOS App Store: there are lots of competitors, but the lock-in arguably creates a market definition of Apple customers. AWS customers are largely locked-in and at the mercy of AWS prices. That's the argument. I'm not sure I buy it, but it's one perspective.