<div dir="auto"><div dir="auto">Dear Ovedim,</div><div dir="auto"><br></div><div dir="auto">The premise behind coming onaah is that good are commodities asked they have an approximate market price. This is definitely true for some good, but it's it the rule out the exception? </div><div dir="auto"><br></div><div dir="auto">When ploughing through the analyses of the Pitchei Choshen on hilchot onaah,v it was relatable how well aware the author of the economic reality, and how Halacha would be different for good for which there is no commodified marketplace and price. He recognized that even there venues in which a good is offered for sale would legitimately impact the price. Translation: the price of a coffee at a cafe is commodified for that kind of cage, but doesn't obligate the Hilton to charge the same mid level price. </div><div dir="auto"><br></div><div dir="auto">Now I came across and article that talks about the same phenomenon from the perspective of microeconomic theory, namely how common is an efficient market. The conclusion that that though out does definitely exist, it may not be the norm. This has two kinds of consequences for onaah. Ok there one hand, there are more markets where we cannot apply on onaah because they are insufficiently commodified. On the other hand, onaah arguably suddenly becomes very applicable to market players at the margins of somewhat efficient markets, i.e. where there is some kind of going rate, but with many players trying to abide market power and other kind of powers to collect higher prices. </div><div dir="auto"><br></div><div dir="auto">Thoughts?</div><div dir="auto"><br></div><a href="https://aeon.co/essays/what-should-econ-101-courses-teach-students-today">https://aeon.co/essays/what-should-econ-101-courses-teach-students-today</a><div dir="auto"><br></div><div dir="auto">Excerpt: »For example, in the CORE textbook, firms are introduced as having the
power to set prices. That might sound obvious but it’s not how things
work in the typical introductory model of a perfectly competitive
market. In that model, there are lots of identical sellers and the
market sets a price. Firms can choose to either sell at that market
price or not sell at all. Imagine a street with several very similar
pizza parlours: if one tries to charge a much higher price than the
others, customers will notice and stop shopping there, and that parlour
will have to lower its price.</div>
<p>At least that’s the old Econ 101
logic. CORE puts that at the back of its approach to signify that it’s
the special case rather than the norm, says Bowles. Instead, the CORE
pedagogy teaches a model where firms sell different goods, and each has
at least some power to dictate prices and wages. This choice has
implications for more than prices. By eschewing the perfect competition
model, CORE introduces the idea that power is a central aspect of market
interactions.«</p></div>