4 ms·
> In this analogy peak pricing has a limit: it would very quickly make harvesting the crop unprofitable. What? Equalizing or normalizing the costs over the en
by donmcronald 3y ago
> In this analogy peak pricing has a limit: it would very quickly make harvesting the crop unprofitable.
What? Equalizing or normalizing the costs over the entire year by price gouging on repairs during non-peak months doesn't suddenly make the total cost any different. Farmer's are absolutely bearing the cost having a service network that can satisfy peak demand no matter what kind of pricing scheme is backing it.
If a low priority repair costs $5 in the off season, but $55 for the same thing during the peak, farmers aren't better off getting charged $30 for both. It's still $60 at the end of the year. If anything, that penalizes the farmer that's doing preventative maintenance in the off-season and benefits the farmer that leaves their equipment to break down at critical times. The responsible person is subsidizing the irresponsible person in that case.