Home
»
Trains Magazine
»
Forums
»
General Discussion
»
One reason the Pennsylvania Railroad went broke

Edit post

Edit your reply below.

Post Body
Enter your post below.
I agree that what the customer perceives as fairness can influence their buying decision.  However, what the customer perceives as fairness is often in the eyes of the beholder.  It cannot be regulated because it cannot be defined.  So, the way fairness is controlled is through the law of supply and demand.  If a customer feels that product is unfairly priced, they are free walk away and search elsewhere.  What could be more fair than that?  The seller wants the highest price and the customer wants the lowest price.  Neither one is free to dictate to the other what the price should be.    <o:p></o:p> A lot of people believe that a gas station has no right to raise the price on gasoline that is in their underground tank, bought, and paid for.  They would say that if they bought gas there in the morning at $3 per gallon, the station has no right to charge them $3.25 in the afternoon for gas out of the same pool of gas from the same tank.  They reason that the value of the gas in the underground tank is only determined by what the station paid for it, and therefore the station has no justification in raising the price because they paid one price for the gas in the underground tank.  <o:p></o:p> However, the value of the gas in the underground tank fluctuates according to supply and demand.  So the value of a tank of gas can change from one moment to the next.  So, the gas in the underground tank is really not the same item from one minute to the next.  It depends on how much gas is in the whole supply chain and how much the whole world wants gas.
Tags (Optional)
Tags are keywords that get attached to your post. They are used to categorize your submission and make it easier to search for. To add tags to your post type a tag into the box below and click the "Add Tag" button.
Add Tag