Archived posting to the Leica Users Group, 2003/03/07

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Subject: Re: [Leica] Comments on a BD Colen statement & PMA
From: "Nathan Wajsman (private)" <nathanw@bluewin.ch>
Date: Sat, 08 Mar 2003 07:24:33 +0100
References: <BA8DDE2A.B71E%telyt@earthlink.net> <008201c2e4df$894cd8f0$0000a398@Library> <3E69057D.5070809@bluewin.ch> <003e01c2e511$dbe33320$0000a398@Library>

Jack,

I did not say that economists are devoid of moral judgements or the 
concept of fairness in general. The example you give with people selling 
water for $20/gallon to hurricane victims clearly disgusts me as it 
would anyone else. But when we are talking about normal products 
produced in a market, like the Rapidwinder or Leicavit, then what is a 
"fair" price is impossible to define. You state that Tom sets the price 
at a level which he feels "adequately" compensates him. Fine, but if 
that level were $1000 then he would sell far fewer winders. The order 
backlog may be a result of Tom's illness last year, but it still 
indicates that the price was lower than the market clearing price. I am 
making no judgement about Tom's pricing policy. I know him personally 
and I know that he is a great guy for whom the production of the winders 
and other accessories is partly a labor of love. But I still note that 
the shortage is an indication that he *could* charge more. In fact, when 
Tom's health problems were first made public, I remember one of the 
dealers who shall remain unnamed increased the price of Rapidwinders by 
$100 or so. Was that unethical? I don't know, we are not exactly talking 
about AIDS drugs for poor Africans here or water for hurricane 
victims... But it definitely is an indication that market forces were at 
work.

Life is full of examples of shortages which are "solved" by the market. 
Look at Superbowl tickets. Is scalping unethical? If I buy a ticket from 
a guy outside the stadium for $500, is that price "unfair?" I don't 
think so, it is simply the market price at that particular time and 
place. I could after all have chosen to spend 2 days (or paid someone to 
do so) camped outside the ticket office to ensure that I would get my 
tickets at the nominal price, but I choose to pay a scalper instead. In 
the old Soviet Union, which suffered endemic shortages of everything, 
pensioners and students would supplement their modest incomes in exactly 
that way: by standing in line on behalf of someone else for a fee.

Nathan

- -- 
Nathan Wajsman
Herrliberg (ZH), Switzerland

e-mail: nathanw@bluewin.ch
mobile: +41 78 732 1430

Photo-A-Week: http://www.wajsman.com/indexpaw2003.htm
General photo site: http://www.wajsman.com/index.htm

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Replies: Reply from "Jack Herron" <jherron@theriver.com> (Re: [Leica] Comments on a BD Colen statement & PMA)
In reply to: Message from Doug Herr <telyt@earthlink.net> (Re: [Leica] Comments on a BD Colen statement & PMA)
Message from "Jack Herron" <jherron@theriver.com> (Re: [Leica] Comments on a BD Colen statement & PMA)
Message from "Nathan Wajsman (private)" <nathanw@bluewin.ch> (Re: [Leica] Comments on a BD Colen statement & PMA)
Message from "Jack Herron" <jherron@theriver.com> (Re: [Leica] Comments on a BD Colen statement & PMA)