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by JumpCrisscross 811 days ago
> I do not want to haggle at the grocery

Nobody does. That's why we have fixed pricing. But the fixed price is provided at a premium to the efficient price for each transaction. It's just that nobody wants to bother computing the efficient price, so we're willing to overpay for certainty.

The moment the dollar amounts move into a regime we care about (home purchases, high-end shopping), we drop the pretense and go back to two-sided price discovery. That threshold is a function of our resources, but also our limited cognition. Every transaction is subject to price discrimination. We simply segregate certain sections of the economy to a high price / low volatility regime. (With the moderating function of those who can offload the transaction costs of negotiating.)

> I want to be able to budget and anticipate pricing

And you--and I--pay a premium for it. That's almost what modern supermarkets are: convenience. If you want better quality, you pay up for more-direct sourcing. If you want cheaper goods, there are other channels again.

This is why in most markets, the compromise is a sticker price and discounts for those who negotiate.

1 comments

Grocery stores aren’t even fixed price. They are one of the biggest users of coupons and loyalty for price discrimination for instance.