Friday, February 8, 2013

Customer Dictating Prices

Sometimes what I find interesting and confusing is the fact that everyone we hear cost of living has increase, and eventually this leads to many consumer goods becoming more pricey.

I don't think people foresee price of goods going down, which bring me the question. Can this be changed ?

Then I thought of something, which I believe many would observe is that for same good in a given year, the price may vary by location too. Meaning someone is buying it cheaper...aha, that reminds the Nobel winning concept on Information asymmetry - Information asymmetry models assume that at least one party to a transaction has relevant information whereas the other(s) do not.

What if consumers are to unite to re-balance the demand and supply ? What if consumers all boycott the ones with higher prices and go for the one with lower prices ? Of course, demand and supply may suggest that eventually due to overwhelming demand, the price may go up too.True, but then again, what if when it goes up, consumers again boycott it ? Will this create a more efficient and competitive economy ? Would do this partially resolve escalating consumer goods prices?

What if we have a database of all the goods with prices and locations ? What if we create communities or groups to exercise our invisible hands to correct the market from businessman who are extremely greedy in profit margin ?

This far fetch idea in theory can shape the market for the better and probably disrupt the operating model of various industries...

If only we see the day we are unite in having our say in the prices