The Japanese have developed a method to create square watermelons. Apparently, this solves the reported tough problem of storing and cutting a round watermelon. In reality, I think the demand is that it’s just a cool gift.
The method is fairly simple: the fruit is grow in a box and as it grows it fills the box shape. Presumably then, you could grow a dodecahedron watermelon. :-)
One thing from the article that caught my eye was this comment from Damien Sutherland, the exotic fruit buyer for Tesco (a large British grocery chain): “[The price of a square melon in Japan is] absolutely extortionate and although extra work goes into growing these that vastly inflated price cannot be justified.”
Wow! According to Sutherland, when the buyer pays the price that the seller offers, it’s extortion! From his sake, I hope this was just a verbal slip; it would be embarrassing to be someone who presumably went to business school who doesn’t understand basic market economics.
Though, in his defense, as a society, we’ve gotten to the point that we hate demand based price changes for commodities; especially when there isn’t any perceived increase in value.
For example, non-commodity goods and services like plane tickets are expected to change price depending on demand. However, when a soda machine changes price based on outside temperature, people get very upset.
The criticism here is that there was no additional cost of doing business. On closer inspection, though, I think that it is an adverse reaction to the free market dynamic, where regardless of lack of additional cost of doing business, if a good is in more demand, sellers can increase the price to match.
I think that part of this viewpoint, is that as Americans, we don’t have any supply problems for commodities. We always have fully stocked grocery stores, our gas stations always have gas, and so on. However, for plane tickets, there is a supply limit.
So from a consumer perspective, commodity supply is infinite. So if demand goes up, there is no reason for price to go up.
This reasoning is a big reason we have “price gouging” protection laws. For example, if there’s a crisis, a gas station owner will probably want to raise prices. From his perspective, his supply chain may be broken and people are willing to pay more.
Obviously, this can be considered predatory and unethical. But if a transaction occurs, where the terms are agreed on by the seller and buyer, is this really a crime?
The answer for that depends the sort of government you have. For us, when price gouging occurs in an emergency situation, it is illegal, since it interferes with the government’s ability to restore order. Which, of course, makes sense to me.