I think there is far more price fixing and collusion than most people realize. Many of them are good at keeping it secret and/or paying off the government to be allowed to keep doing it. That's...
I think there is far more price fixing and collusion than most people realize. Many of them are good at keeping it secret and/or paying off the government to be allowed to keep doing it. That's what happens when you have corporations with politicians in their pocket and politicians with corporations in their pocket. They're all getting rich and richer and screwing everyone else over. So fun. Yay.
Our entire government, local, state, and federal is fully corrupt, so yes. Who? All of them. How? Don't know, they're in charge of everything, they can easily cover it up. Wouldn't be the first...
Our entire government, local, state, and federal is fully corrupt, so yes.
Who? All of them.
How? Don't know, they're in charge of everything, they can easily cover it up. Wouldn't be the first time they've covered something up.
Obviously there is corruption in this country, but I think it's absurd to say that every single official of every level of government is corrupt. You are making a very broad claim that is...
Obviously there is corruption in this country, but I think it's absurd to say that every single official of every level of government is corrupt. You are making a very broad claim that is impossible to prove.
Some low-effort searching found this link, which claims that rental vacancy rates in (principal?) cities has gone up 12.3% from 2022 to 2023. That does sound to me like a market distortion, where...
Some low-effort searching found this link, which claims that rental vacancy rates in (principal?) cities has gone up 12.3% from 2022 to 2023.
That does sound to me like a market distortion, where landlords everywhere are willing to let apartments sit empty, rather than lower rents to be more competitive.
From the perspective of a landlord, however, wouldn't outright banning those services be like putting a blindfold on? Rental prices are freely available everywhere, so even without algorithms, you can just manually look at rental prices in the area and price at the same rate.
So you either do rent-control (which will poison development and upkeep in the long-term), build subsidized housing (which will likely end up mired in waste and corruption before it even gets started), or do nothing... and hope that some technological or social innovation (dorm life for all the peasants? lol) finally allows the supply of housing to substantially outstrip demand.
I forsee the same thing happening for all surge pricing. "Buy our product to predict surge pricing and get reccomended price adjustments", which basically just translates to every fast food...
I forsee the same thing happening for all surge pricing.
"Buy our product to predict surge pricing and get reccomended price adjustments", which basically just translates to every fast food franchise jacking up prices every time people normally eat food.
Which is incidentally why surge pricing for food and drink is bullshit. The surge price should just be "the price.
"The egg sandwich is $1 all day. Except between 6 AM and 10 AM, then it's $8"
It's semantics no? Is "$1 except 6am-10am it's $8" any different from "$8 except after 10am it's $1". It's like the BS arguments around net neutrality, they're not charging more for certain...
It's semantics no? Is "$1 except 6am-10am it's $8" any different from "$8 except after 10am it's $1".
It's like the BS arguments around net neutrality, they're not charging more for certain services it's discounting the other services.
It's a very different thing, because I presume they don't advertise the surge prices. Discounts at well-defined hours is a reward for adjusting your times. Increased pricing when busy is a...
It's a very different thing, because I presume they don't advertise the surge prices.
Discounts at well-defined hours is a reward for adjusting your times. Increased pricing when busy is a punishment.
The difference between fines and incentives. One is a lot more hostile to customers.
It’s exactly the same thing with different labels. This is such a common fallacy that it’s a well studied topic in economics and very often used by advertisers.
It’s exactly the same thing with different labels. This is such a common fallacy that it’s a well studied topic in economics and very often used by advertisers.
Money illusion can also influence people's perceptions of outcomes. Experiments have shown that people generally perceive an approximate 2% cut in nominal income with no change in monetary value as unfair, but see a 2% rise in nominal income where there is 4% inflation as fair, despite them being almost rational equivalents. This result is consistent with the 'Myopic Loss Aversion theory'.
No, because psychology matters. The way policies are implemented affect their usage. A NIT is functionally the same as a UBI, but a NIT has psychological aspect that that UBI does not. UBI clearly...
No, because psychology matters. The way policies are implemented affect their usage. A NIT is functionally the same as a UBI, but a NIT has psychological aspect that that UBI does not. UBI clearly seperates the collection from the distribution, and nobody makes the mistake that 'earning more reduces my UBI.'
There are laws on the books that you can't have a "going out of business sale" in perpetuity. It doesn't matter if 40% off == your actual price.
The can of beans at the grocey store can't be perpetually labelled at 20% off from $1.20 when they always sell it for $1.
If the surge pricing always lines up with core business hours, that means that's the price, and that's the one that should be posted at all times, outside of designated 'discount hours'.
That’s apples and oranges. Who said that in this hypothetical world where Wendy’s had surge pricing, they would advertise the low demand price? Is that how flights or any other demand based...
That’s apples and oranges. Who said that in this hypothetical world where Wendy’s had surge pricing, they would advertise the low demand price? Is that how flights or any other demand based pricing products work?
They would almost certainly implement it as a “”discount”” for that very reason. Same thing, different labels.
I edited more while you replied. They should be mandated to advertise with the highest price unless the discounted hours are clearly deliniated in the ad.
I edited more while you replied. They should be mandated to advertise with the highest price unless the discounted hours are clearly deliniated in the ad.
So you wouldn’t have any actual issues with Wendy’s doing surge pricing as long as the highest price is listed? Obviously they would advertise the cheaper hours, the point is to make more money...
So you wouldn’t have any actual issues with Wendy’s doing surge pricing as long as the highest price is listed? Obviously they would advertise the cheaper hours, the point is to make more money from times when they don’t make that much money.
Which is funny because people have no issue with happy hours. All Wendy's really had to do was creep the normal price up, then offer a "skip the crowds discount" during off hours, and people would...
Which is funny because people have no issue with happy hours. All Wendy's really had to do was creep the normal price up, then offer a "skip the crowds discount" during off hours, and people would eat it up, literally and figuratively, even though it's literally the same thing.
They could even advertise it as an "anti-inflation" promotion.
I don't think this is relevant to Wendy's use of surge pricing. In that case, Wendy's is just changing their own prices during peak usage times. If Wendy's were actually using a third-party to...
I don't think this is relevant to Wendy's use of surge pricing. In that case, Wendy's is just changing their own prices during peak usage times. If Wendy's were actually using a third-party to recommend prices, in which that third-party was also providing pricing suggests to a competitor, that might run afoul of the law in this article.
This seems pretty squarely targeted at the landlord companies who use software which allows them to collude at rent setting. In addition to boasting about their proactivity in protecting renters, the FTC is also trying to warn some private landlords who might be considering use of the same software to maximize their own rents.
As being the most recent example yes. But I'm sure this could apply equally well in other sectors, which are just not yet prominant. Laying it out so explicitly is definitely sending a strong...
As being the most recent example yes. But I'm sure this could apply equally well in other sectors, which are just not yet prominant.
Laying it out so explicitly is definitely sending a strong message to the rest of the economy as well.
I could see this making waves throughout the retail sector over time as well.
That would be more price discrimination, which unlike price fixing is actually something you'd want to happen, despite it's somewhat scary name. Although it's a balance between reducing dead...
That would be more price discrimination, which unlike price fixing is actually something you'd want to happen, despite it's somewhat scary name. Although it's a balance between reducing dead weight loss and realistic consumer convenience.
It depends very much what the criteria is. Charging more for insuring people with pre-existing conditions (as happened before Obamacare) is price discrimination too. On the other hand, nobody...
It depends very much what the criteria is. Charging more for insuring people with pre-existing conditions (as happened before Obamacare) is price discrimination too. On the other hand, nobody minds discounts during happy hour.
Generally speaking, describing something as a discount is more popular, even if it's the same economic effect. But as we see with airlines and hotels, businesses also want to advertise lower prices, even if you don't pay that price.
I suppose there's similar reasoning around why Wendy's wants to do dynamic pricing.
I guarantee that if there is a drop in the price of beef and I demand a cheaper burger I won't get very far. But maybe that's what we should do? Go back to haggling for prices.
I guarantee that if there is a drop in the price of beef and I demand a cheaper burger I won't get very far. But maybe that's what we should do? Go back to haggling for prices.
You’re not going to get very far because Wendy’s doesn’t have time based price discrimination. But you could get far at other places, although probably not by “demanding”. That is what Happy Hour...
You’re not going to get very far because Wendy’s doesn’t have time based price discrimination. But you could get far at other places, although probably not by “demanding”. That is what Happy Hour is, after all.
I think there is far more price fixing and collusion than most people realize. Many of them are good at keeping it secret and/or paying off the government to be allowed to keep doing it. That's what happens when you have corporations with politicians in their pocket and politicians with corporations in their pocket. They're all getting rich and richer and screwing everyone else over. So fun. Yay.
Our entire government, local, state, and federal is fully corrupt, so yes.
Who? All of them.
How? Don't know, they're in charge of everything, they can easily cover it up. Wouldn't be the first time they've covered something up.
Obviously there is corruption in this country, but I think it's absurd to say that every single official of every level of government is corrupt. You are making a very broad claim that is impossible to prove.
Some low-effort searching found this link, which claims that rental vacancy rates in (principal?) cities has gone up 12.3% from 2022 to 2023.
That does sound to me like a market distortion, where landlords everywhere are willing to let apartments sit empty, rather than lower rents to be more competitive.
From the perspective of a landlord, however, wouldn't outright banning those services be like putting a blindfold on? Rental prices are freely available everywhere, so even without algorithms, you can just manually look at rental prices in the area and price at the same rate.
So you either do rent-control (which will poison development and upkeep in the long-term), build subsidized housing (which will likely end up mired in waste and corruption before it even gets started), or do nothing... and hope that some technological or social innovation (dorm life for all the peasants? lol) finally allows the supply of housing to substantially outstrip demand.
oh. holy shit. in addition to the rent examples, is this related to wendy's?
Wendy's is one business. Surge pricing by itself is not illegal. Who is Wendy's cooperating with the fix prices?
I forsee the same thing happening for all surge pricing.
"Buy our product to predict surge pricing and get reccomended price adjustments", which basically just translates to every fast food franchise jacking up prices every time people normally eat food.
Which is incidentally why surge pricing for food and drink is bullshit. The surge price should just be "the price.
"The egg sandwich is $1 all day. Except between 6 AM and 10 AM, then it's $8"
It's semantics no? Is "$1 except 6am-10am it's $8" any different from "$8 except after 10am it's $1".
It's like the BS arguments around net neutrality, they're not charging more for certain services it's discounting the other services.
It's a very different thing, because I presume they don't advertise the surge prices.
Discounts at well-defined hours is a reward for adjusting your times. Increased pricing when busy is a punishment.
The difference between fines and incentives. One is a lot more hostile to customers.
It’s exactly the same thing with different labels. This is such a common fallacy that it’s a well studied topic in economics and very often used by advertisers.
No, because psychology matters. The way policies are implemented affect their usage. A NIT is functionally the same as a UBI, but a NIT has psychological aspect that that UBI does not. UBI clearly seperates the collection from the distribution, and nobody makes the mistake that 'earning more reduces my UBI.'
There are laws on the books that you can't have a "going out of business sale" in perpetuity. It doesn't matter if 40% off == your actual price.
The can of beans at the grocey store can't be perpetually labelled at 20% off from $1.20 when they always sell it for $1.
If the surge pricing always lines up with core business hours, that means that's the price, and that's the one that should be posted at all times, outside of designated 'discount hours'.
That’s apples and oranges. Who said that in this hypothetical world where Wendy’s had surge pricing, they would advertise the low demand price? Is that how flights or any other demand based pricing products work?
They would almost certainly implement it as a “”discount”” for that very reason. Same thing, different labels.
I edited more while you replied. They should be mandated to advertise with the highest price unless the discounted hours are clearly deliniated in the ad.
So you wouldn’t have any actual issues with Wendy’s doing surge pricing as long as the highest price is listed? Obviously they would advertise the cheaper hours, the point is to make more money from times when they don’t make that much money.
That’s not an issue with surge pricing, then.
Which is funny because people have no issue with happy hours. All Wendy's really had to do was creep the normal price up, then offer a "skip the crowds discount" during off hours, and people would eat it up, literally and figuratively, even though it's literally the same thing.
They could even advertise it as an "anti-inflation" promotion.
I don't think this is relevant to Wendy's use of surge pricing. In that case, Wendy's is just changing their own prices during peak usage times. If Wendy's were actually using a third-party to recommend prices, in which that third-party was also providing pricing suggests to a competitor, that might run afoul of the law in this article.
This seems pretty squarely targeted at the landlord companies who use software which allows them to collude at rent setting. In addition to boasting about their proactivity in protecting renters, the FTC is also trying to warn some private landlords who might be considering use of the same software to maximize their own rents.
It seems pretty clearly targeted at landlords?
As being the most recent example yes. But I'm sure this could apply equally well in other sectors, which are just not yet prominant.
Laying it out so explicitly is definitely sending a strong message to the rest of the economy as well.
I could see this making waves throughout the retail sector over time as well.
What about Wendy’s?
https://fortune.com/2024/02/29/wendys-dynamic-pricing-criticism-alienating-customers/
That would be more price discrimination, which unlike price fixing is actually something you'd want to happen, despite it's somewhat scary name. Although it's a balance between reducing dead weight loss and realistic consumer convenience.
It depends very much what the criteria is. Charging more for insuring people with pre-existing conditions (as happened before Obamacare) is price discrimination too. On the other hand, nobody minds discounts during happy hour.
Generally speaking, describing something as a discount is more popular, even if it's the same economic effect. But as we see with airlines and hotels, businesses also want to advertise lower prices, even if you don't pay that price.
I suppose there's similar reasoning around why Wendy's wants to do dynamic pricing.
I guarantee that if there is a drop in the price of beef and I demand a cheaper burger I won't get very far. But maybe that's what we should do? Go back to haggling for prices.
You’re not going to get very far because Wendy’s doesn’t have time based price discrimination. But you could get far at other places, although probably not by “demanding”. That is what Happy Hour is, after all.