I argued that supply and demand are fiction, and
I argued that supply and demand are fiction, and one of the reasons is that even if you raise prices in the long run, consumption decreases in the short term (usually within 3-6 months), but after a while, consumption does not decrease as it is recognized as normal prices.
Another reason is one's perception of fair prices.
In fact, there are quite a few cases where they don't buy an umbrella and go out in the rain, saying that the price of an umbrella at a convenience store on a rainy day is expensive when it reaches $10.
Uber prices are also cheap when they are normal, but if Uber prices double on snowy days, they say they will never use Uber from next time.
In fact, when it rains, demand increases, so it's natural that prices rise. By supply and demand. On a snowy day, Uber also has higher demand and supply, so it's natural that prices rise. But we don't recognize the price and get angry... It's not fair price...
In fact, Douglas Ivester, the CEO of Coca-Cola, once suggested that Coca-Cola vending machines be priced differently depending on the temperature. Coca-Cola is expensive on hot days and cheap on cold days. Even though he didn't actually market it and only presented ideas, he eventually had to resign.
The theory of supply and demand has such a nonsensical structure.
Because we have the concept of a useless fair price.
So I'm always critical of what I'm saying is, leave it to the market, or it's determined by supply and demand. Some supply and demand will work, but in many ways this logic doesn't apply.
According to an actual survey, raising the price of shovels after heavy snow falls
They say that it is reasonable in terms of supply and demand but not fair.
This has precedents. What is justice in the preface...
When a person fleeing their home from a storm and tsunami in California quickly flocked to a small hotel where they went to sleep overnight, the owner raised the price a lot and let only the person who paid the price sleep. This became controversial and ended up on trial, and the hotel owner was found guilty of being fined for not being fair. No supply and demand???
There's also the Netflix case. A long time ago, Netflix paid 9,9 dollars for both streaming and DVD services. But internal analysis shows that most of them were using only one service. So, we decided to get $7 for using only one service. It's a good opportunity for everyone since most of them used only one service. It was a mess. They put up a booth saying it was unfair, and in an instant, 1 million customers moved to another place. In the end, Netflix ordered it back to its original location... The reason why I was so angry was because of the unfair price...
The actual price of Uber is also true, and in 2013, it increased the price by 8 times during heavy snow in New York City. The reason is that only then will Uber drivers come out to drive. However, this policy has been criticized by intelligents and many citizens. When demand increases suddenly, premium price payments are a given....
Uber is usually more expensive than a taxi, but the surcharge is smaller. In fact, the surcharge is for the person who wants to get on and the person who is driving... If the price gets a lot bigger, people complain a lot.
Let's do a virtual experiment. Let's say there's a car service called Louver. The service charge for this Louver is eight times higher than for Uber. Would we have criticized Louver if it received the same amount during heavy snow? No. It was originally eight times, so we're getting the normal amount. We're willing to use the Louver service. Since we don't have Uber...
- Many quotes from the sense of wealth -