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Another rant: Clueless price-matchers

Blue Sky Mine

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Reply #15 on: March 04, 2008, 07:44:22 am
Quote from: "air1"
Quote from: "pseudoswede"

So you have no desire to make him a better tennis player?


I'm worried about myself and no one else

It's called capitalism.. go look it up


In this case, no. This egotrip costs you much more than your concurrent could take from you through using your information.
EO Blue Sky Mine (XAI), ID 2041

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Schwupp, die Polizei hat´s nicht geseh´n,
das macht Spaß!
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munjalm

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Reply #16 on: March 04, 2008, 10:03:05 am
When competing with larger airlines, I drop prices by cents... with smaller ones, I drop significantly to drive them out of my zones.

I'm a corporate shark.  :twisted:
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Creedy

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Reply #17 on: March 04, 2008, 02:21:32 pm
Quote from: "Triple_7"
As for dropping €250+ off a route with only you and one other person, what are you trying to do here, help set a record as to how fast this game gets drove into a virtual gridlock like the past rounds.  


well thats hard to say. i have tried to create routes with just me and 1 competitor. sometimes the only way i could get 100% load factor is dropping the price 300-500. i.e. 1000 to 600. at first i thought other ppl were just trying to be stupid cutting price in half but later realized they didnt have a choice. although yes i agree sometimes people are just trying to be a pain. some guy put 7 frequencies on one of my routes with a Bae at half my price.

i do prefer people dropping prices by 1 rather then 5-10 thou. dropping by 1 means we can keep the price higher for longer before it drops to 1.
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rocketboy

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Reply #18 on: March 04, 2008, 02:28:45 pm
I guess the only thing that is reasonable to say about this topic is that it would be better if the game algorithms dealt with short sighted business practises more effectively. It might take a little while, but in the real world companies that make an entire market segment unprofitable go bust or at the very least their boards are fired by their stockholders. I think the game logic is pretty good as is, but there are still some holes that allow dumb behaviour to be sustainable. That being said, I'm not sure in real life even LAX to SFO could support the 25 airlines currently competing for passengers, so the game logic has to 'give' somewhere.

As for capitalism being solely about looking out for yourself, that is not strictly true and doesn't necessarily mean screwing everyone else at all costs anyway. It is not in any one companies interest for a market segment to completely collapse and profit margins to reach zero. Why do you think companies are constantly being caught colluding with each other and being punished for it (especially in the airline industry where price matching on stuff like fuel surcharges for instance is rampant)? It's much better that everyone in a market make some money than no one makes any.

Air1, perhaps YOU should look it up. Might I suggest reading Adam Smith's Wealth of Nations first.

And, anyone who seriously thinks they are a shark by ruining a market for everyone should consider that once all the fish are gone everyone goes hungry. Seriously it's more like being a insert french for shower here than a shark.
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Blue Sky Mine

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Reply #19 on: March 04, 2008, 02:47:21 pm
Quote from: "rocketboy"
As for capitalism being solely about looking out for yourself, that is not strictly true and doesn't necessarily mean screwing everyone else at all costs anyway. It is not in any one companies interest for a market segment to completely collapse and profit margins to reach zero. Why do you think companies are constantly being caught colluding with each other and being punished for it (especially in the airline industry where price matching on stuff like fuel surcharges for instance is rampant)? It's much better that everyone in a market make some money than no one makes any.


Just what I was saying.
EO Blue Sky Mine (XAI), ID 2041

Mein Maserati fährt 210,
Schwupp, die Polizei hat´s nicht geseh´n,
das macht Spaß!
Ich geb Gas, ich geb Gas


air1

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Reply #20 on: March 04, 2008, 06:37:52 pm
Quote from: "rocketboy"

Air1, perhaps YOU should look it up. Might I suggest reading Adam Smith's Wealth of Nations first.


I was referencing his statement about making his competitor "better" instead of letting him go out of business

I've read WON, I have a degree in economics... maybe YOU YOU YOU YOU should understand what people are trying to say


killian320

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Reply #21 on: March 04, 2008, 06:53:40 pm
Stay on topic please!


dktc

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Reply #22 on: March 04, 2008, 06:55:53 pm
Quote from: "killian320"
Stay on topic please!



second half of the sentence: ... or it will be locked so fast that all your heads would spin. :twisted:
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pseudoswede

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Reply #23 on: March 04, 2008, 07:26:22 pm
Quote from: "air1"
Quote from: "rocketboy"

Air1, perhaps YOU should look it up. Might I suggest reading Adam Smith's Wealth of Nations first.


I was referencing his statement about making his competitor "better" instead of letting him go out of business


Here is an inherent problem with the game: unless the majority of the an airline's routes are <5% loads, they won't go bankrupt!

Moderators: I believe this is a very valid, on-topic discussion about the subject.
             
Planet Express Airways
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air1

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Reply #24 on: March 04, 2008, 07:30:45 pm
Quote from: "pseudoswede"

Here is an inherent problem with the game: unless the majority of the an airline's routes are <5% loads, they won't go bankrupt!

Moderators: I believe this is a very valid, on-topic discussion about the subject.


A realistic game wouldn't be any fun.  Airlines operate billions of $$ worth of equipment fairly efficiently (better than they used to) and still manage to lose money


dktc

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Reply #25 on: March 04, 2008, 07:33:01 pm
Quote from: "pseudoswede"
Moderators: I believe this is a very valid, on-topic discussion about the subject.


Besides those flaming "you's" and hosility, I agree with you. :wink:
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pseudoswede

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Reply #26 on: March 04, 2008, 07:45:44 pm
Quote from: "air1"

A realistic game wouldn't be any fun.


I agree with you. From a financial standpoint, it's better to teach the uninformed of their mistakes so that you rake in more profits while they squander their profits doing silly things.

How about this analogy... You and two of your friends are sitting at the only blackjack table in the casino. You all know perfect strategy, and all three of you are making good money. A doofus sits down at 3rd base and immediately starts making stupid plays (splitting tens, hitting 13 on dealer 6, etc.), causing you to not make as much money. Given this is the only blackjack game in town, wouldn't you want to help the doofus out and let him know he's making mistakes? At that moment, guiding him along towards perfect strategy will help everyone out.

After he leaves, he'll probably forget what you taught him and will go back to making stupid plays.
             
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Blue Sky Mine

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Reply #27 on: March 04, 2008, 08:41:14 pm
Quote from: "pseudoswede"

How about this analogy... You and two of your friends are sitting at the only blackjack table in the casino. You all know perfect strategy, and all three of you are making good money. A doofus sits down at 3rd base and immediately starts making stupid plays (splitting tens, hitting 13 on dealer 6, etc.), causing you to not make as much money. Given this is the only blackjack game in town, wouldn't you want to help the doofus out and let him know he's making mistakes? At that moment, guiding him along towards perfect strategy will help everyone out.


Lol, nice example :lol:
EO Blue Sky Mine (XAI), ID 2041

Mein Maserati fährt 210,
Schwupp, die Polizei hat´s nicht geseh´n,
das macht Spaß!
Ich geb Gas, ich geb Gas


air1

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Reply #28 on: March 04, 2008, 10:48:46 pm
Quote from: "pseudoswede"
Quote from: "air1"

A realistic game wouldn't be any fun.


I agree with you. From a financial standpoint, it's better to teach the uninformed of their mistakes so that you rake in more profits while they squander their profits doing silly things.

How about this analogy... You and two of your friends are sitting at the only blackjack table in the casino. You all know perfect strategy, and all three of you are making good money. A doofus sits down at 3rd base and immediately starts making stupid plays (splitting tens, hitting 13 on dealer 6, etc.), causing you to not make as much money. Given this is the only blackjack game in town, wouldn't you want to help the doofus out and let him know he's making mistakes? At that moment, guiding him along towards perfect strategy will help everyone out.

After he leaves, he'll probably forget what you taught him and will go back to making stupid plays.


In blackjack your playing against the dealer, not against each other.   And if you want to use that game as an analogy for a route, that isn't "the only game in town".... theres a billion more different options you can go to


pseudoswede

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Reply #29 on: March 04, 2008, 11:19:49 pm
Quote from: "air1"

In blackjack your playing against the dealer, not against each other.   And if you want to use that game as an analogy for a route, that isn't "the only game in town".... theres a billion more different options you can go to


Yes, you are playing against the dealer, but stupid actions of others playing against the dealer at the same table will affect you, as well. If you can help minimize those stupid actions, you will, in theory, win against the dealer.

As for other games in town, yes, sometimes this game does feel like a slot machine. Will I keep my 100% load on this route? Or will someone immediately drop their fares on that route?
             
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