3 ms·

> can we not have surge pricing for some things? Isn't surge pricing how you prevent shortages? If you are going to the store for milk, would you rather have a

> can we not have surge pricing for some things? Isn't surge pricing how you prevent shortages? If you are going to the store for milk, would you rather have a 50% chance to be able to buy it at $3, or a 100% chance to buy it at a variable price between $2 and $4?

rat9988 2y ago
In the second case someone else is not buying, so if we are not all buying it, at least we can have it cheaper.
- cortesoft 2y ago
  Right, but not everyone wants it equally. Some people are like, "I kind of like milk sometimes so I'll buy it if it's cheap" while others are like "my kids need to drink milk to survive I'll buy it no matter what". Surge pricing can help make sure the "kinda want it maybe" people aren't taking supply from the "I really really need it" folks
semi-extrinsic 2y ago
Surge pricing does not increase supply, and by design it does not decrease demand to the point where demand is less than supply. The end result is that exactly the same number of people can buy exactly the same products. The only difference is that companies make more money from selling the same products, and that products in short supply are distributed more towards the people with deeper pockets.
- gruez 2y ago
  >The end result is that exactly the same number of people can buy exactly the same products. Right, but arguably with surge pricing it can put the limited supply into people who need it the most. Without price gouging laws/price controls, no matter how badly/ambivalent about buying the milk, you'll buy it. Upping the price forces everyone to weigh how badly they need the milk, and ensures that people who need it the most gets it. Of course, the usual caveat of "willingness/ability to pay =/= neediness" applies, but price is probably the best mechanism we have short of setting up a Bureau of Rationing and having everyone fill out a 10 page application justifying why they need milk.
  - deleted 2y ago
    [deleted]
  - deleted 2y ago
    [deleted]
- senordevnyc 2y ago
  "Surge pricing" comes from Uber, where it absolutely can increase supply. If you're a part-time driver not working and then prices are suddenly double or triple, you might decide it's worth it to go make hay while the sun shines.

rat9988 2y ago

In the second case someone else is not buying, so if we are not all buying it, at least we can have it cheaper.

cortesoft 2y ago
Right, but not everyone wants it equally. Some people are like, "I kind of like milk sometimes so I'll buy it if it's cheap" while others are like "my kids need to drink milk to survive I'll buy it no matter what". Surge pricing can help make sure the "kinda want it maybe" people aren't taking supply from the "I really really need it" folks

semi-extrinsic 2y ago

Surge pricing does not increase supply, and by design it does not decrease demand to the point where demand is less than supply. The end result is that exactly the same number of people can buy exactly the same products. The only difference is that companies make more money from selling the same products, and that products in short supply are distributed more towards the people with deeper pockets.

gruez 2y ago
>The end result is that exactly the same number of people can buy exactly the same products. Right, but arguably with surge pricing it can put the limited supply into people who need it the most. Without price gouging laws/price controls, no matter how badly/ambivalent about buying the milk, you'll buy it. Upping the price forces everyone to weigh how badly they need the milk, and ensures that people who need it the most gets it. Of course, the usual caveat of "willingness/ability to pay =/= neediness" applies, but price is probably the best mechanism we have short of setting up a Bureau of Rationing and having everyone fill out a 10 page application justifying why they need milk.
- deleted 2y ago
  [deleted]
- deleted 2y ago
  [deleted]
senordevnyc 2y ago
"Surge pricing" comes from Uber, where it absolutely can increase supply. If you're a part-time driver not working and then prices are suddenly double or triple, you might decide it's worth it to go make hay while the sun shines.