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by zumachase
2175 days ago
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> It seems to me that others in the thread are describing a scenario where product is discarded because the price has already fallen so far that it is no longer profitable after accounting for various processing costs (ie things such as packaging and transportation). I understand what people are saying. Unfortunately this just isn’t how things work. If there were a way for this to occur, prices would respond. Ultimately markets aggregate information and package it up in a single metric we call price. If all of a sudden there was a new future demand for some good, no matter how you frame it, prices will respond. |
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Obviously this includes a number of assumptions which might not hold. The redistributed product can't reenter the market. It must only go to those who otherwise could not have purchased it or an equivalent in the near term. The total value being redistributed must be insignificant relative to the market as a whole (to limit secondary effects). Etc.
> markets aggregate information and package it up in a single metric we call price
In terms of the movement of information, product that would otherwise have been destroyed seems irrelevant. Consumers who were otherwise incapable of consuming seem irrelevant. Am I missing something?