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Why do you assume that setting a high price or raising prices is "abusing customers"? If customers are paying that price, what's the problem? Are the customers

Why do you assume that setting a high price or raising prices is "abusing customers"? If customers are paying that price, what's the problem? Are the customers idiots who can't be trusted how to allocate their money? High prices is only "abuse" if there is a monopoly on that good and there is no substitute. Which, yes that is bad, we should stop it. BUT even a true monopoly doesn't explain a generalized increase in prices where consumers do not react to higher prices on A by reducing spending on B. Edit: Of course there is variance in the degree to which owners will pursue profit maximization, up to and including "I am already rich and I will operate this at a loss for the good of the public", but the median (or even 75th percentile) firm I don't think is at "pass all cost savings onto customers even if I'm leaving money on the table."

JohnFen 3y ago
I'm sure that we have a basic disagreement here, but I think it's a bad thing to charge insane profit margins. It's called price gouging. Whether or not customers pay it isn't really relevant to that assessment. > Are the customers idiots who can't be trusted how to allocate their money? Of course not. But you seem to be assuming that the only reasons people might pay absurd prices for something is because there is no competition or they're stupid. I don't think that's the case. There are a lot of other circumstances where people have little choice but to pay crazy high prices for things. Personally, I regard this as an ethical thing. I think that it's not ethical to overcharge for stuff. I set prices by determining the cost to produce the thing and adding a reasonable profit margin to that, because I couldn't sleep at night doing it any other way. > I will operate this at a loss for the good of the public I am not advocating that any business operate at a loss.

JohnFen 3y ago

I'm sure that we have a basic disagreement here, but I think it's a bad thing to charge insane profit margins. It's called price gouging. Whether or not customers pay it isn't really relevant to that assessment. > Are the customers idiots who can't be trusted how to allocate their money? Of course not. But you seem to be assuming that the only reasons people might pay absurd prices for something is because there is no competition or they're stupid. I don't think that's the case. There are a lot of other circumstances where people have little choice but to pay crazy high prices for things. Personally, I regard this as an ethical thing. I think that it's not ethical to overcharge for stuff. I set prices by determining the cost to produce the thing and adding a reasonable profit margin to that, because I couldn't sleep at night doing it any other way. > I will operate this at a loss for the good of the public I am not advocating that any business operate at a loss.