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> Equipment manufacturers collect lots and lots of data about soil, weather, yields, and other factors, which they can then share with or sell to “affiliates an
by MikeUt 5y ago
> Equipment manufacturers collect lots and lots of data about soil, weather, yields, and other factors, which they can then share with or sell to “affiliates and suppliers.”
So a company selling seeds (with a no-reselling clause in their contracts) could buy that information, make a good guess at a farmer's profit margin, and individually adjust their pricing to the maximum that each farmer would be willing to pay.
Yet another way in which big players can abuse information asymmetry.
- lotsofpulp 5y ago> Yet another way in which big players can abuse information asymmetry. Solution here is to not allow for the asymmetry. So much of society’s ills are caused by incentives to keep information asymmetric, so that market participants cannot make optimal (to all) informed decisions.