Comment on Amazon accused again of overcharging shoppers with Buy Box
MadhuGururajan@programming.dev 7 months agoNo the claim is that the inflation is artificial… not the prices.
Comment on Amazon accused again of overcharging shoppers with Buy Box
MadhuGururajan@programming.dev 7 months agoNo the claim is that the inflation is artificial… not the prices.
blazera@kbin.social 7 months ago
They both always are. Companies make up the prices, and price increases. Predicting how much folks are willing to pay.
EncryptKeeper@lemmy.world 7 months ago
Well no, artificial in the sense that it’s arbitrary, as opposed to price increases tied to something more tangible, like cost.
blazera@kbin.social 7 months ago
Its a common misconception, prices are never based on cost, its what people are willing to pay. Now, what people are willing to pay can be influenced by perceived costs, but thats pretty artificial too. The prices at a restaurant for example vary pretty wildly in profit margins. Pretty famously, sodas cost cents to make, but people are willing to pay orders of magnitude more.
EncryptKeeper@lemmy.world 7 months ago
Prices are 100% influenced by cost. That soda may be $3.00 even when the syrup is $.30, but if the cost of syrup went up to $2.00, the price of soda at the restaurant would go up. It would do so not because they arbitrarily decided it, but due to the cost of the syrup eating into their margins.