3 ms·

Is there not a law or regulation that prevents a retailer, such as a grocer, from changing their prices so rapidly? It seems.. very dystopian, and unfriendly.

lotsofpulp 2y ago
It is how all markets worked (and still work in developing countries). I have seen my grandparents haggling with a merchant over the price of fruits and flour and everything else. Developed countries just had richer populations that could afford to pay a high enough price such that merchant can eat the volatility and not have to pay the labor costs of having an employee to haggle. However, due to automation, price discrimination for low profit margin/high volume goods is more able to hone in someone’s ability/willingness to pay. Similarly, buyers are able to scan the internet very quickly for what other sellers are willing to sell at. And technically, price discrimination has existed for a long, long time in the US too via coupons and mailed discounts based on purchasing history. Only thing that changes is the frequency.
- akira2501 2y ago
  > buyers are able to scan the internet very quickly for what other sellers are willing to sell at. For retail goods, this makes sense; however, the notion that the majority of people are doing this for food items like bananas and potatoes is a little bit specious. I mean are the types of retailers you're describing posting their prices on the Internet in the first place? Or is price discovery happening entirely by word of mouth?
  - lotsofpulp 2y ago
    If a price arbitrage opportunity opens, then other retailers will advertise their lower prices. That is why grocery retail is so low margin, if you try to increase your profit margin, someone else will take your business.
abdullahkhalids 2y ago
Rapid dynamic pricing already exists in the airline and hotel businesses. I don't think anybody likes it, and it's not benefiting consumers. It would be good that for airlines and hotels the rate of pricing changes was curtailed severely.
- joezydeco 2y ago
  But the price doesn't change from the time between putting the ticket in your cart and checking out with your credit card. These articles are implying that this could happen in a grocery store. There's no way consumers would stand for it.
  - abdullahkhalids 2y ago
    Airline booking sites enforce the same by holding your cart for 30 min/1 hour or so. After that you are required to repick your tickets with possibly higher prices.

lotsofpulp 2y ago

It is how all markets worked (and still work in developing countries). I have seen my grandparents haggling with a merchant over the price of fruits and flour and everything else. Developed countries just had richer populations that could afford to pay a high enough price such that merchant can eat the volatility and not have to pay the labor costs of having an employee to haggle. However, due to automation, price discrimination for low profit margin/high volume goods is more able to hone in someone’s ability/willingness to pay. Similarly, buyers are able to scan the internet very quickly for what other sellers are willing to sell at. And technically, price discrimination has existed for a long, long time in the US too via coupons and mailed discounts based on purchasing history. Only thing that changes is the frequency.

akira2501 2y ago
> buyers are able to scan the internet very quickly for what other sellers are willing to sell at. For retail goods, this makes sense; however, the notion that the majority of people are doing this for food items like bananas and potatoes is a little bit specious. I mean are the types of retailers you're describing posting their prices on the Internet in the first place? Or is price discovery happening entirely by word of mouth?
- lotsofpulp 2y ago
  If a price arbitrage opportunity opens, then other retailers will advertise their lower prices. That is why grocery retail is so low margin, if you try to increase your profit margin, someone else will take your business.

abdullahkhalids 2y ago

Rapid dynamic pricing already exists in the airline and hotel businesses. I don't think anybody likes it, and it's not benefiting consumers. It would be good that for airlines and hotels the rate of pricing changes was curtailed severely.

joezydeco 2y ago
But the price doesn't change from the time between putting the ticket in your cart and checking out with your credit card. These articles are implying that this could happen in a grocery store. There's no way consumers would stand for it.
- abdullahkhalids 2y ago
  Airline booking sites enforce the same by holding your cart for 30 min/1 hour or so. After that you are required to repick your tickets with possibly higher prices.