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submitted 1 year ago by zephyreks@lemmy.ml to c/worldnews@lemmy.ml
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[-] rottingleaf@lemmy.zip 0 points 1 year ago

there is no such thing as a ‘natural’ price.

Have you seen a middle-eastern market? Of the kind where they bargain. Like in fairy-tales.

That's how markets actually look in the wild.

And the natural price is the mathematical expectation of the price you get by bargaining.

It's very simple and in this particular case "mainstream" economics and libertarian economics get along pretty well.

[-] FuckyWucky@hexbear.net 20 points 1 year ago* (last edited 1 year ago)

no. because the prices are influenced by external factors. i live in a country where markets like these exist and the price is not 'natural' in any way, in an idealized world maybe but not in reality.

firstly, transporting any commodity (and inputs such as fertilizers) requires fuel and fuel prices aren't determined by such idealized markets you mentioned, its determined by what cartels and oligopolies want it to be. you are also ignoring subsides, not just by the national governments but foreign governments. for example, developed countries provide a shit ton of subsidies which pull down prices in the international markets, without restrictions and tariffs these displace local production.

there is also the fact that food prices are very inelastic, the seller can push prices very high and the consumer will be forced to accept it because you can't live without food.

i dont really get the middle eastern market you are mentioning because in reality there is absolutely price discrimination going on.

[-] rottingleaf@lemmy.zip 0 points 1 year ago

OK. Natural prices exist as an unreachable ideal point, but there are no absolutely natural prices in real world. I agree, and, BTW, no ancap would argue with that.

[-] FuckyWucky@hexbear.net 20 points 1 year ago* (last edited 1 year ago)

natural prices can only exist in an environment where every consumer and producer has all the information and is completely rational.

if you are rich and a vegetable seller who typically charges $5 for a vegetable charges you $10 you are unlikely to bargain as you would consider it a waste of your time and energy and just buy it. is this person being rational by not wanting to waste their time or irrational because they aren't squeezing more out of the seller.

read this too

[-] rottingleaf@lemmy.zip 1 points 1 year ago

My two comments combined do not contradict what you say.

Thx for the link, I'll look at it

[-] Dolores@hexbear.net 19 points 1 year ago

Have you seen a middle-eastern market? Of the kind where they bargain. Like in fairy-tales

imagine citing a fantasy trope to justify economic policy jfc

[-] rottingleaf@lemmy.zip 0 points 1 year ago* (last edited 1 year ago)

I don't need to justify anything to you. It's an example for educational purposes.

EDIT: And if you think it's just a fantasy trope, then you probably haven't been out of your state.

[-] Dolores@hexbear.net 7 points 1 year ago

you called it a fairy tale, genius

[-] rottingleaf@lemmy.zip 0 points 1 year ago

I wonder what's the longest text you've read in your life and understood anything at all.

[-] ShimmeringKoi@hexbear.net 2 points 1 year ago* (last edited 1 year ago)

Hey aren't you that guy from like a week ago who refused to read a two paragraph article someone linked you?

[-] rottingleaf@lemmy.zip 1 points 1 year ago

I remember no such thing, but if you link me the thread, we'll see.

[-] ShimmeringKoi@hexbear.net 2 points 1 year ago
[-] rottingleaf@lemmy.zip 0 points 1 year ago

So you haven't.

this post was submitted on 25 Dec 2023
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