What probability of the drugs being counterfeit would you be willing to accept? Also, the profit maximizing strategy of the seller might be to initially sell 100% genuine drugs and then slowly lower this percentage.
It might. Another profit maximizing strategy might be to gain a large portion of the market by making her business open, reliable, and with a quality product that grows through word-of-mouth advertising.
Based of what I’ve heard from and about the seller (that she responds to emails, offers refunds, sent gwern free samples, and keeps a running blog on the site), I’m going say that rather than a manipulative game theorist, she sounds like a genuine businesswoman who’s found an open niche in the market.
Her price isn’t that great, even with the Reddit discount, so I’d say something like p>0.2 would be enough to push me to buy from the Silk Road or one of the other online pharmacies instead.
What probability of the drugs being counterfeit would you be willing to accept? Also, the profit maximizing strategy of the seller might be to initially sell 100% genuine drugs and then slowly lower this percentage.
It might. Another profit maximizing strategy might be to gain a large portion of the market by making her business open, reliable, and with a quality product that grows through word-of-mouth advertising.
Based of what I’ve heard from and about the seller (that she responds to emails, offers refunds, sent gwern free samples, and keeps a running blog on the site), I’m going say that rather than a manipulative game theorist, she sounds like a genuine businesswoman who’s found an open niche in the market.
What do you mean?
Let p = the probability of the drugs being counterfeit. For what values of p would you be willing to buy the drug?
Her price isn’t that great, even with the Reddit discount, so I’d say something like p>0.2 would be enough to push me to buy from the Silk Road or one of the other online pharmacies instead.
I had never heard of Silk Road. Now I understand the appeal of Bitcoins.