• rottingleaf@lemmy.zip
    ·
    10 months 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 [none/use name]
      ·
      edit-2
      10 months 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
        ·
        10 months 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 [none/use name]
          ·
          edit-2
          10 months 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

    • Dolores [love/loves]
      ·
      10 months 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