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Article #92Re: Outsider viewpoint of CA power crisis
From: John Navas
Date: Fri, 25 May 2001 00:11
Date: Fri, 25 May 2001 00:11
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2442 bytes
[POSTED TO ba.general - REPLY ON USENET PLEASE] In <3B0567E7.76FB3EF1@quiotix.com> on Fri, 18 May 2001 11:20:23 -0700, Jeffrey Siegal <jbs@quiotix.com> wrote: >Tom Keener wrote: >> What I find curious is a market based on the _highest_ price for a >> commodity. > >Every business works that way. There is a market price for potatoes >which is the equilibrium reached in the marketplace between the highest >cost producer necessary to satisfy demand, and the highest price >consumers are willing to pay. > >If you are able to produce potatoes for less, you pocket the >difference. In a functional commodity market, price equilibrium is reached at the _lowest_ price that producers are willing to accept (and the highest price that consumers are willing to pay). That's not working here because artificial scarcity and inelastic demand permit sellers to bid absurd prices with relative impunity. In a functional market, that kind of price dislocation would be inhibited by such things as competitive alternatives, market entrants, and going without, things that are lacking here. -- Best regards, John Navas <http://navasgrp.home.att.net/>
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X-Google-Language: ENGLISH,ASCII-7-bit X-Google-Thread: 10b619,af5e5edc3039a6a2 X-Google-Attributes: gid10b619,public X-Google-Thread: f824f,af5e5edc3039a6a2 X-Google-Attributes: gidf824f,public X-Google-Thread: 107d03,af5e5edc3039a6a2 X-Google-Attributes: gid107d03,public X-Google-ArrivalTime: 2001-05-24 17:11:35 PST Path: arc1-ca.pugleaf.net!archiver1.google.com!newsfeed.google.com!newsfeed.stanford.edu!news-spur1.maxwell.syr.edu!news.maxwell.syr.edu!newsfeed.cwix.com!typhoon.sonic.net!not-for-mail From: John Navas <spamfilter@navasgrp.dublin.ca.us> Newsgroups: sdnet.general,ba.general,la.general Subject: Re: Outsider viewpoint of CA power crisis Organization: The Navas Group, Dublin, CA, USA References: <9e1rc7$gdj$1@slb1.atl.mindspring.net> <3b0558ea.291284937@nntp.cts.com> <3B0567E7.76FB3EF1@quiotix.com> X-Newsreader: Forte Agent 1.8/32.548 MIME-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit Lines: 30 Message-ID: <VqhP6.10864$Et2.24467@typhoon.sonic.net> Date: Fri, 25 May 2001 00:11:33 GMT NNTP-Posting-Host: 209.204.185.87 X-Complaints-To: abuse@sonic.net X-Trace: typhoon.sonic.net 990749493 209.204.185.87 (Thu, 24 May 2001 17:11:33 PDT) NNTP-Posting-Date: Thu, 24 May 2001 17:11:33 PDT