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SpicyLemonZestyesterday at 9:49 PM1 replyview on HN

Companies can't meet demand exactly, no matter what profit margin they take, because it's not possible to predict demand exactly. Biasing towards overproduction is how you minimize the risk of shortages when there's a bit more demand than you expected.


Replies

8notetoday at 3:47 AM

as far as a market clearing problem goes, we should be forcing them to sell it at lower and lower prices, or even going to negative and payoyng people to take it off their hands.

supply and demand is that an oversupply makes prices fall, rather than driving artificial scarcity