Thread

1. DoneWithAllThat · 1790709748 · focus · HN ↗

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   1. hyperlinerapp · 1790711201 · focus · HN ↗

      “Drones are racist, just like clear nail polish and white paint (ah and math)”
   2. wat10000 · 1790713143 · focus · HN ↗

      I think "gouging" is an entirely fair description for targeted pricing that charges certain people more solely because your analytics suggest that they're willing to pay more.

      1. gbacon · 1790713776 · focus · HN ↗

         When a potential employer demonstrates willingness to pay more with an offer that includes higher compensation, is the applicant a “price gouger” for charging a higher price than she would would have otherwise?

         When someone is selling a house, is the seller a “price gouger” for accepting the higher of two competing offers for the same house?

         1. wat10000 · 1790714689 · focus · HN ↗

            Do you have any rhetorical examples that don't involve major negotiations? There's a big difference between two parties sitting down to hammer out a deal worth six or seven figures, and getting charged more in a retail transaction because the company has collected megabytes of data on my personal habits and they think I'll pay more for mouthwash.

            People don't want every single retail transaction to turn into a negotiation on the level of buying a house or taking a new job.

            1. gbacon · 1790715977 · focus · HN ↗

               It happens all around us. The term from the literature is market segmentation. Exceedingly bright people make a lot of money identifying, analyzing, and adapting to the boundaries of market segments. Airline prices tend to be more expensive during the week because business travelers occupy more seats, want to get home sooner, and are less price-sensitive due to employers footing the bill. In the U.S., your choice of Publix, Kroger, Walmart, or Aldi for grocery shopping demonstrates your most comfortable segment. After passing through the doors of your favorite grocer, further opportunities for market segmentation are in your choice between name brands or store brands, which both may have originated from the same supplier.

               Grocery store margins tend to be thin. Where they really want you going is to the pharmacy, and surprisingly, what they want you to buy is generic drugs — more market segmentation. The name brand drugs tend to be really expensive. The generics are much cheaper in direct comparison, and for the store, the margin on generics is higher because name-brand prices create headroom. Yes, these broad generalizations have lots of exceptions, e.g., some generics are not perfect substitutes for name brand drugs, but the general pattern is there.

               1. wat10000 · 1790721635 · focus · HN ↗

                  Market segmentation and dynamic pricing aren’t the same thing. Dynamic pricing is showing two different people different prices for an identical purchase based on your knowledge of the potential purchasers. It’s not, Amazon carries name brand and generic products because some people will pay more for the brand. It would be, Amazon shows me $10 for SKU X and shows you $20 for SKU X because their data says you’ll pay $20.

                  1. gbacon · 1790732701 · focus · HN ↗

                     ok
   3. gbacon · 1790714324 · focus · HN ↗

      Have the lockdowns and empty shelves that formerly held toilet paper really been that long ago? Artificially forcing sale prices to remain static when the underlying dynamic, which is to say the price, has changed creates economic dislocation and even suffering. Prices carry information and are not arbitrary.

      Choose your emergency: paper products, bottled water after a hurricane, etc. Value is subjective; no item has an underlying True Intrinsic Price. When demand increases, the item becomes more valuable. The price should go up, at least in the short term. When held lower than the market price, runs occur and shelves empty. When allowed to rise, increased prices have a natural rationing effect to keep goods on the shelves for people who need them. Higher prices attract new providers, and the increased supply brings prices back down as circumstances return to normal.

      Analyzed rationally, we see there’s no such thing as price gouging. The concept is an appeal to our base instincts.

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