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Pizza price, gouging, or supply and demand?

Pizza price, gouging, or supply and demand?

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sh76
Civis Americanus Sum

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@quackquack said
It seems reasonable to think a higher price is justified just because it is much more costly to deliver pizza to Time Square on New Years Eve. You need to pay all employees more to get someone them to work on that night and it is so crowded that each delivery takes longer and thus fewer are made. The fact that people without looking at costs structures assume that they are being gauged is ridiculous.
It might actually be more efficient because so many orders are in one area rather than less efficient.

But that's beside the point. The question is whether increasing prices due to higher demand requires any such justification. It costs United Airlines roughly the same amount to fly from Newark to MIA today as it will on the day before the Super Bowl, but prices for that flight on the day before the Super Bowl are already double what they are on the previous and subsequent Saturdays.

I have no moral, and certainly no legal, problem with that.

Earl of Trumps
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just to throw a little gas on deblasio, New York City has a f'n INCOME tax, so you get the feds, the state of NY, and the CITY of NY digging a gold mine in your pants every week. Of course the cost of living is higher. Of course labor is higher. of course costs are higher - including delivering a pizza.

New York City GOUGES the public with - among others, draconian cigarette taxes, $13 a pack and it's mostly TAX.

And this PIG deblasio has the balls to talk about gouging? deblsasio does all this at the point of a gun. you have a choice with a pizza store.

q

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@sh76 said
It might actually be more efficient because so many orders are in one area rather than less efficient.

But that's beside the point. The question is whether increasing prices due to higher demand requires any such justification. It costs United Airlines roughly the same amount to fly from Newark to MIA today as it will on the day before the Super Bowl, but prices for that flig ...[text shortened]... e previous and subsequent Saturdays.

I have no moral, and certainly no legal, problem with that.
I have no problem moral or legal problem with it either. I just am suggesting that I believe that costs would be much higher and thus keeping prices the same would force Dominos to take a loss.

K

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@sh76 said
It might actually be more efficient because so many orders are in one area rather than less efficient.

But that's beside the point. The question is whether increasing prices due to higher demand requires any such justification. It costs United Airlines roughly the same amount to fly from Newark to MIA today as it will on the day before the Super Bowl, but prices for that flig ...[text shortened]... e previous and subsequent Saturdays.

I have no moral, and certainly no legal, problem with that.
There is a moral argument in favour of this kind of pricing system. Airlines cannot easily increase or decrease the size of their fleet. So from the viewpoint of optimizing the usage of their aircraft, flexible pricing makes sense as it leads to higher occupancy and thus efficiency.

sh76
Civis Americanus Sum

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@quackquack said
I have no problem moral or legal problem with it either. I just am suggesting that I believe that costs would be much higher and thus keeping prices the same would force Dominos to take a loss.
Understood. But when you frame the argument in that way, you implicitly concede that they need some sort of justification to raise their prices. I'm sure you didn't mean to, but that's the way it comes off.

There are price gouging laws against taking advantage of true emergencies (such as by jacking up the price of fresh water after a hurricane). In those cases, added cost may be used to justify price hikes. But nobody forced revelers to Times Square on NYE. Dominos is justified in charging whatever they can get. Whether it's good business is a different issue.

no1marauder
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@sh76 said
That is actually an excellent point.

Surge pricing is quite literally part of Uber's pricing structure. Airlines routinely charge double and triple fares based on demand for a particular flight at a particular time.

Maybe someone can shed some light on the moral difference between charging double for a pizza pie on New Year's Eve and charging double for a flight to Miami the day before the Super Bowl?
Unless I'm mistaken, the only reason the doubling of prices was effective at all was because of a government policy:

"Attendees will be directed by police officers to gather in separate viewing pens, and as the evening progresses, revelers will continue to populate Times Square along Broadway and Seventh Avenue moving uptown from 43rd Street to Central Park.

Anyone who leaves before the ball drops will not be able to regain entry to their original viewing area."

https://abc7ny.com/society/what-you-need-to-know-nyc-security-closures-for-new-years-eve/5791337/

That is, apparently, the ONLY place where the delivery price was doubled:

"As people readied to kick off the night and a new decade, a Midtown Domino’s franchise delivered pizzas worth $30 each — double the normal cost of a pizza — to those who were at Time Square’s ball drop, as the New York Post reported."

https://ijr.com/dominos-responds-de-blasios-criticism-pizza-nye/

So it's hardly an example of laissez faire capitalism at work.

s
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@AverageJoe1
Not at 78. I could get a job as a Walmart greeter or a hash slinger but I am a high tech dude.

no1marauder
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@earl-of-trumps said
just to throw a little gas on deblasio, New York City has a f'n INCOME tax, so you get the feds, the state of NY, and the CITY of NY digging a gold mine in your pants every week. Of course the cost of living is higher. Of course labor is higher. of course costs are higher - including delivering a pizza.

New York City GOUGES the public with - among others, draconian ...[text shortened]... about gouging? deblsasio does all this at the point of a gun. you have a choice with a pizza store.
NYC has had its own income tax for 100 years: https://www.politico.com/states/new-york/albany/story/2018/03/08/the-dry-origins-of-new-yorks-income-tax-303917

Shallow Blue

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@no1marauder said
So it's hardly an example of laissez faire capitalism at work.
There never has been. Big Money has always been supported by "Small" but Oppressive, Right-wing Government.

sh76
Civis Americanus Sum

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@no1marauder said
Unless I'm mistaken, the only reason the doubling of prices was effective at all was because of a government policy:

"Attendees will be directed by police officers to gather in separate viewing pens, and as the evening progresses, revelers will continue to populate Times Square along Broadway and Seventh Avenue moving uptown from 43rd Street to Central Park.

[b]Anyo ...[text shortened]... ds-de-blasios-criticism-pizza-nye/

So it's hardly an example of laissez faire capitalism at work.
Speaking of which. What do those people do about using the restroom? Or do I not want to know?

no1marauder
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@sh76 said
Speaking of which. What do those people do about using the restroom? Or do I not want to know?
Whether you wanted to know or not, the NY Post did extensive research on the question: https://nypost.com/2019/12/31/new-years-eve-2020-revelers-line-up-for-times-square-ball-drop/

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