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nok22kon 3 hours ago

the more portable everyone is, the more arbitrage will happen - cheap providers will raise prices too because users will flow to them

xnx 2 hours ago | parent [-]

This is not a theory of market competition that I've heard before.

nok22kon 2 hours ago | parent | next [-]

basic supply/demand

demand moves to cheaper providers, they ran out of capacity and increase price

literally why "commodities" are "commodities" - the more interchangeable a product is the more exposed it is to supply/demand mechanics

xnx an hour ago | parent [-]

Agree. The less "stuck" a customer is to a given provider, the more that prices should equalize between providers.

kasey_junk 2 hours ago | parent | prev [-]

It’s also an usual use of the term arbitrage

nok22kon 2 hours ago | parent [-]

you will not want 20 different accounts at 20 providers, you'll have one at a "token arbitrage" provider - OpenRouter

drop-shipping is a form of arbitrage