Asian Fever
Jerkmate

Fantasy Prices - Redux

Alberta Mod

Banned
Mar 10, 2004
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Alberta Mod said:
I recieved a PM from a PERB user regarding my closing of this thread and it was taken to heart.

My original comment for shutting down this thread was because "the topic had been beat to death".....in retrospect this was in error. Not the action of closing this thread but my stated reason for doing so.

While a healthy discussion is always welcome on any topic I was getting disgusted with the constant sniping from one user to another.

AM
Based on the PM referenced in my comments above I am starting a new thread for this topic.

If you would like to provide feedback on quotes made in the original "Fantasy Prices" thread you can select, cut, copy and paste here. I'd request that you keep your comments related to the subject at hand and NOT comments on someone else's behavior, intelligence, etc.

Thanks and happy posting.



AM
 

Bueller

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Jul 15, 2003
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I recall something similar happening about five years ago when prices went up to two brown. Conversations about economics degraded into heated invective: twenty dollars became an excuse to fling faeces around. Looks like it's all circular.

I see the price increase as a simple law of economics: supply and demand. Right now, Fantasy is in high demand, and being the only Fantasy, is in low supply. I think, regardless of who works there (or who works where), Fantasy is a high quality establishment. Well maintained tables, decent towels, and attractive decor. I have been in other parlours that charge comparable rates that are not as nice. Smell like stale cigarettes, no shower stalls in the rooms, and threadbare towels. How many times have any of us had an uncomfortable tear in the bed right below our asses?

I doubt keeping a facility as well maintained as Fantasy is cheap. I won't speculate at the reasons, but I will say that I will continue to visit Fantasy, even if other parlours keep their prices lower. Well, later.

I am willing to pay for that which I want.
 
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Mar 14, 2004
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Bueller said:

I see the price increase as a simple law of economics: supply and demand.
I
Loads of journals articles and books have been written on Supply and Demand. It is a very complex theory that can only be applied when all the variables are taken into account.
 
Mar 14, 2004
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walrus said:
Yea but what about the standard prefix/suffix...

"All else being equal"

It is not possible to take ALL the variable into account, what we are looking at is the "effect of a price change on demand, all else being equal".

no re-distribution of the quality ladies, no change in service levels, no change in supply, no change in location.... just a simple price change.

If you really want me to plug up the 'airways' I can send you the formula for calculation of Price Elasticity on Demand...

Yes the simplistic analysis is to look at Fantasy as though it is in a vacuum. External factors should be taken into account as well.

If memory serves me correct the formula for Elasticity of Demand is P * Q = E. A very standard formula that is completely useless when used incorrectly.
 

BS Detector

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Sep 8, 2003
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Yeah...What he said !!!

johngenx said:
That formula is correct, but simplistic in it's assumption that the demand curve is linear, whch they are often not.

It is much more precise to use the first derivative of the given formula for the demand function.

Example:

Suppose our demand function f(x) = x to the power 2, or "x squared"

Where x=2, f(x) = 4
Where x=4, f(x) = 16

Hence, we have a simple non-linear equation where plotting the linear slope between two known points is inaccurate.

Where f(x) = x2
f'(x) = 2x

This, of course, assumes that the demand function has but one variable, x, and is much too simplistic, but you get the idea.

Some models of estimation introduce stochastic calculus where we attempt to introduce random varibles to compensate for true unknowns and have them reflected in the outcomes.
 

xraygogs

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Mar 4, 2004
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Hmmmmm ... I think Johngenx watched "A Beautiful Mind" a few too many times ... but again Russell Crowe is a great actor...
 
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