4 ms·
Any market where the prices are negotiated is a bad market. That means that it is a market where there is an asymmetry of power between vendors and buyers, cau
by adrian_b 11mo ago
Any market where the prices are negotiated is a bad market.
That means that it is a market where there is an asymmetry of power between vendors and buyers, caused by the fact that the vendors know more than the buyers, i.e. only the vendors know the right price for their products.
Therefore in such a market there are winners and losers among the buyers. Those buyers who buy quantities great enough to have negotiating power and who have knowledge about the right prices can buy at those prices, while the other buyers are fooled by the vendors into paying excessive prices.
The fact that the big-volume buyers deserve discounts has nothing to do with price negotiation. In a good market, where there is enough competition, the volume discounts can be public and available for anyone.
Also, a public auction for a product where the demand exceeds the offer has nothing to do with a secret price negotiation.
Any vendor who promotes price negotiation is a vendor who desires to steal money from its customers, instead of performing a mutually advantageous exchange.