[arin-ppml] Will the price per IP really be affected by thetransfer market introduced in 2009-1?

[Joe Maimon]

Ted Mittelstaedt wrote:
> That only works in a commodity market. 
All markets have an affinity to work that way.
>  Many markets do not work this
> way. 
Many markets have externalities that attempt to prevent them from 
working this way.
>  For example, housing.   Many many people right now are sitting on
> homes and NOT selling even though they are still having to pay mortgages
> on them on loans that they are underwater on, because they HOPE that
> prices will rise.
>   
Market forces tend to prevail in the short term. In the long term, 
market forces inevitably win.

Home prices go down, people sell, people buy, home prices go up.

In fact the longer you interfere with the market, the worse your 
comeuppance is at correction time.
That is my interpretation of the events in the U.S housing market.
> You can argue that home markets are not competitive - well that's not
> true since home values are lowered by lowering values on nearby homes.
> But even though they are competitive, they still do not act like the
> Adam Smith ideal of capitalism.
>   
Sure they do, but nobody ever says the road to pareto efficiency isnt bumpy.
> There are many many examples of people who could have short-sold
> a second home and walked away with a minor capital gains penalty,
> but due to a refusal to countenence taking a loss, gambled and ended
> up in foreclosure and bankruptcy and lost their primary home too.
>   
And that is good news to buyers. And your example disproves your own 
thesis namely, that price can be held artificially high for extended 
periods of time.

Joe