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The fact that we don't have surge pricing on everything is a market inefficiency that only exists due to the lack of technology. This seems inevitable, unless w

The fact that we don't have surge pricing on everything is a market inefficiency that only exists due to the lack of technology. This seems inevitable, unless we legislate against it (what detractors could accurately call price fixing).

JohnFen 2y ago
Surge pricing is just automated price gouging.
- gruez 2y ago
  Do you think commodity markets are "price gouging", given that prices there are dictated by supply and demand, which is essentially "surge pricing"? eg. Russia invades Ukraine -> oil prices go up
  - JohnFen 2y ago
    Commodity markets are essentially auctions. That's a completely different thing. I do think if we conducted retail sales using that model, it would be very damaging to most real people.
    - gruez 2y ago
      >I do think if we conducted retail sales using that model, it would be very damaging to most real people. Is that really the case? Gas prices change daily and are closely correlated with crude oil prices.
      - ohmyiv 2y ago
        > Gas prices change daily and are closely correlated with crude oil prices. I think you missed the first part of the comment where they addressed that: >Commodity markets are essentially auctions. That's a completely different thing.
        gruez 2y ago
        I don't think I missed anything. Gas prices fluctuate multiple times per day, and it's unclear how it's "very damaging to most real people", contrary to what OP claims. Moreover, gas prices aren't "essentially auctions", so I don't see how the "That's a completely different thing" excuse applies. Finally, the person only mentions that it's "completely different", but failed to explain why that's relevant.
QuercusMax 2y ago
Price controls are not the same as price fixing. Price fixing is done by cartels to ensure all their prices stay high. Price controls are implemented by governments to prevent price gouging.
twelfthnight 2y ago
If you had an efficient market, wouldn't a competitor charge just a little less than others who are using surge pricing? Isn't the whole efficient market thing about how eventually prices should reach the cost of production, which would not be affected by surge demand?
- ohmyiv 2y ago
  > If you had an efficient market, wouldn't a competitor charge just a little less than others who are using surge pricing? Absolutely. If everyone raised their prices of umbrellas due to rain, I'd lower my prices a bit to get those customers. I'd probably wind up making more overall too. Hopefully it will also lead to increasing return customers due to goodwill. If everything works out, not only would I sell more umbrellas, but I'd make more money in the future from returning customers. Win for me. And I feel like that's why we _don't_ have surge pricing on everything already.
  - senordevnyc 2y ago
    If everyone raised their prices of umbrellas due to rain, I'd lower my prices a bit to get those customers. And then so would they, and so would you, and so would they, and pretty soon you'll all find an equilibrium-while-raining price.
pazimzadeh 2y ago
that would encourage people to hoard/bank resources when prices are low. which could lead to more underground markets/resellers, which could be bad for quality control. seems fine for something like clothes, but not for food.
Sohcahtoa82 2y ago
It seems to me that "market inefficiency" is a euphemism for the dystopian hyper-capitalist hellhole concept of extracting as much money as possible from your customer, all other side effects, both short and long term, be damned.

JohnFen 2y ago

Surge pricing is just automated price gouging.

gruez 2y ago
Do you think commodity markets are "price gouging", given that prices there are dictated by supply and demand, which is essentially "surge pricing"? eg. Russia invades Ukraine -> oil prices go up
- JohnFen 2y ago
  Commodity markets are essentially auctions. That's a completely different thing. I do think if we conducted retail sales using that model, it would be very damaging to most real people.
  - gruez 2y ago
    >I do think if we conducted retail sales using that model, it would be very damaging to most real people. Is that really the case? Gas prices change daily and are closely correlated with crude oil prices.
    - ohmyiv 2y ago
      > Gas prices change daily and are closely correlated with crude oil prices. I think you missed the first part of the comment where they addressed that: >Commodity markets are essentially auctions. That's a completely different thing.
      - gruez 2y ago
        I don't think I missed anything. Gas prices fluctuate multiple times per day, and it's unclear how it's "very damaging to most real people", contrary to what OP claims. Moreover, gas prices aren't "essentially auctions", so I don't see how the "That's a completely different thing" excuse applies. Finally, the person only mentions that it's "completely different", but failed to explain why that's relevant.

QuercusMax 2y ago

Price controls are not the same as price fixing. Price fixing is done by cartels to ensure all their prices stay high. Price controls are implemented by governments to prevent price gouging.

twelfthnight 2y ago

If you had an efficient market, wouldn't a competitor charge just a little less than others who are using surge pricing? Isn't the whole efficient market thing about how eventually prices should reach the cost of production, which would not be affected by surge demand?

ohmyiv 2y ago
> If you had an efficient market, wouldn't a competitor charge just a little less than others who are using surge pricing? Absolutely. If everyone raised their prices of umbrellas due to rain, I'd lower my prices a bit to get those customers. I'd probably wind up making more overall too. Hopefully it will also lead to increasing return customers due to goodwill. If everything works out, not only would I sell more umbrellas, but I'd make more money in the future from returning customers. Win for me. And I feel like that's why we _don't_ have surge pricing on everything already.
- senordevnyc 2y ago
  If everyone raised their prices of umbrellas due to rain, I'd lower my prices a bit to get those customers. And then so would they, and so would you, and so would they, and pretty soon you'll all find an equilibrium-while-raining price.

pazimzadeh 2y ago

that would encourage people to hoard/bank resources when prices are low. which could lead to more underground markets/resellers, which could be bad for quality control. seems fine for something like clothes, but not for food.

Sohcahtoa82 2y ago

It seems to me that "market inefficiency" is a euphemism for the dystopian hyper-capitalist hellhole concept of extracting as much money as possible from your customer, all other side effects, both short and long term, be damned.