Just Pricing 3.
On day 1, Tool-1's price is set to 1.1 x tool-1 cost, and all other prices are set to just prices. An approximate social equality is achieved, with the idleness of all members bunched together around the mean idleness value. Although of the 15 members in this system, only 4 make tools of substantial value, the rest making cheap low-value tools, all members of the trading system have the same idleness. Members of this trading system buy tools indiscriminately. That is, they do not check whether the price of a tool exceeds its value. And all the low-value tools have prices in excess of their value. When tool buyers begin to discriminate, on day 400, they stop buying these tools. As a result, the idleness of the token low-value tool makers falls, and that of the high value tool makers rises. Equality vanishes. Thus this kind of just pricing system only works if buyers are indiscriminate, buying everything regardless of price.
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Author: Chris Davis
Last edited: 5 Sep 1998