A little about reseller and speculators
1. Outbid - it can be good, but it can be bad.
2. It is good when markets are competitive, but due to a sharp increase in demand, the existing supply chains cannot cope. Outbids allow you to quickly solve such a problem.
3. The case with hygiene items from this area. The excitement is associated with the statement by P&G about the increase in selling prices by an average of 40%. When consumers expect such strong growth, they run to buy products to win in the long run.
4. Prices in stores do not adjust instantly - the range of goods is large, price tags need to be printed and changed, the situation on the network may differ. Logistics and purchasing departments can not cope with the hype. And here outbids enter the scene.
5. In short, if you have competition among buyers and competition among sellers, outbidding works well.
6. In any case, these are temporary difficulties. Chains will be rebuilt, supplies will improve. Prices will come to the optimum, the shelves will no longer be empty. Hygiene items will not leave Russia (I hope we will not reach price fixing and a large-scale plan).
7. But if the seller sells a unique product, the substitutes for which cannot be called even close to perfect (for example, the SPS5 console), and the demand is just competitive, outbidding is more likely to harm, sharing the rent with the seller.
8. There is a famous game "Ultimatum". The rules are simple. There is 100$. They need to be divided into two parts. The proportion is assigned by one participant, but the other agrees or disagrees with it. If the second participant does not agree with the proposed proportion, both do not receive money.
9. Many people think that this game is about intuitions regarding the proper proportions of the distribution of wealth. But for me, this game empirically confirms the key patterns of supply and demand, i.e. market exchange.
10. If you do not have a competition of sellers (those who choose the proportion of exchange) and buyers (those who agree), various distribution options are possible, which depend more on personal qualities and preferences than on purely economic factors.
11. And now let's add buyer competition. That is, now the one who assigns the proportion can choose. As a result, the seller's profit increases. This can be clearly seen on the graph.
12. If we have not only competition of buyers, but also of sellers, the proportions will approach the optimal ones - i.e. 50/50.
13. In general, restrictions on repurchases are the norm if the product is unique (or competition needs to be developed). Restrictions can be set by the company itself. In the case of set-top boxes, it is strange to demand state regulation. It's more about sales design. If the market is competitive and faced with difficulties, limiting outbids is stupid. Buying goods will be more difficult.
So it goes.
Grigory Bazhenov 2022-03-23
