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  • It's not artificial demand. They have no control over demand, short of advertising trying to increase interest. They do have complete control over the supply curve, however.


    • I'm being, eh...what's the word I'm looking for? Stupid, I guess.

      Based on the notion that rarity controls demand to some degree, and that DeBeers completely controls effective rarity because of their supply control, I feel it's easier to cut out the middleword and say that DeBeers controls demand. I realize it's not complete control, but I feel it's control nonetheless.

      I suppose "artificial demand" is a poor phrase, though. Consider it fixed.


      You are what you think.
      • What you're calling "demand" is not demand from an economics point of view. It's "market price". Demand is strictly "the amount of a good that consumers are willing and able to buy at a given price."

        The supplier of a good can't control demand, only supply. I might be trying to sell my used Kleenex, and I can artificially limit supply (only selling one per day, even though I could sell at least ten per day), but that doesn't mean that there's more demand.

        All that DeBeers is affecting by controlling s