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That's because those are all different products. Water in the desert is a different product than water at the river and they can still differ in value even in a
by AnthonyMouse 2y ago
That's because those are all different products. Water in the desert is a different product than water at the river and they can still differ in value even in a competitive market because of the cost of transportation.
- SpicyLemonZest 2y agoI think that's a very reasonable way to look at it. But it still means that the auction strategy doesn't always work, because water flowing to me is a different product than water flowing to the auction winner.
- AnthonyMouse 2y agoThose are differences in the buyer/seller rather than differences in the product. It's why people value something differently, not why something is a different product. Even if the water is in the desert in both cases, you might still value it less than someone else, e.g. because you already have some and they don't, but that isn't a difference in the thing being sold.