FuckyWucky [none/use name]
Pro-stealing art without attribution
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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.
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.
The previous leftist government had used complicated currency controls, consumer subsidies and other measures to inflate the peso’s official value and keep several key prices artificially low, including for gas, transportation and electricity.
Yea devaluing peso from 360 for a dollar to 790 for a dollar instantly meanwhile is such a big brain play.
there is no such thing as a ‘natural’ price. every price is artificial. OPEC is literally a cartel ffs. The concept of ‘artificial’ pricing is so libertarian brained.
EU