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by 0xbear 3262 days ago
With transparent, market driven pricing, you don't have to negotiate.
2 comments

That's so incorrect I cannot resist replying.

What do you think a market is, if not negotiations about prices?

The simplest markets are commodity markets: there are a large number of sellers, a large number of buyers, a large quantity of goods which are all substitutable for each other -- who cares whether you buy this bushel of winter wheat vs that other one? -- and everyone has perfect communication with each other.

Like perfectly spherical cows, this doesn't happen exactly in the real world, but is close enough to some scenarios to be useful.

Here are factors which affect the price in the market and therefore require negotiation:

- flood - drought - unexpected hot weather - unexpected cold weather - diseases - war - transportation costs - fertilizer costs - labor costs - legal manipulation - accidents - irrationality

(I left out governments, taxes, and all sorts of illegal things that won't count as "transparent", but exist anyway.)

And that's just to buy grain, a commodity so basic that the Babylonians invented accounting and writing to deal with it.

Yes, you need to negotiate. Sometimes you can just say: "the price you quoted is sufficiently low that I can accept it immediately", but that's merely the fastest negotiation.

Doesn't that assume that contracting resources are all the same?
Not necessarily. You just need a trustworthy reputation system to go with everything else. Some things will cost more, some less, more reputation costs more, too. Relevant, in demand experience costs more.
Oh, goodie. I get to compete against people who are gaming the system to enhance their artificial reputation in the name of a market.

Do I get to trade recommendations with 30 people on "Agile Methodologies?" We can turn LinkedIn into a MMORPG! Great!

You're already competing against those people. You're just doing it in an environment that puts you at a disadvantage.
What exactly do you think a market is?