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if everyone pays $1 more That’s a collective action problem. You can’t get everyone to pay $1 more. If your strawberries (for example) cost $1 more per pint th
by chongli 6y ago
if everyone pays $1 more
That’s a collective action problem. You can’t get everyone to pay $1 more. If your strawberries (for example) cost $1 more per pint then your sales will drop accordingly. It doesn’t matter if all strawberry farms agree to pay more to their strawberry pickers. You aren’t only competing against other strawberry farms, you’re competing against all other food. If strawberries are too expensive, people will eat candy or potato chips instead.
- danbruc 6y agoSo it turn out that people or not willing to pay what it costs to produce strawberries at a wage level at which people are willing to do the hard work. That's fine. The farmer should try to lower the costs by automation or switch to producing potatoes for those potato chips.