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How does aalsmeer flower auction work

01/12/2021 Client: muhammad11 Deadline: 2 Day

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Brenda Sutton Sutton posted Jul 24, 2020 1:19 AM

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After watching the video clip 1,000 Flowers Auctioned per second in holland and did some research on Aalsmeer flower auctions in more detail. Upon during research I learned that the flower auction that takes place in Aalsmeer, Netherlands is the largest in the world and building is the fourth largest building this is so amazing. The selling system they have is amazing because the rise the price and work they way down adjusting the price so the consumer feel as they received a deal. By having this selling system it keeps the demand balanced when the demand is high it sale high and when the demand decrease the prices has already decreased but the company has made its quota. What aspects of perfect competition do you see present in the Aalsmeer flower auctions? Since there is no truly perfectly competitive market in the world, but rather markets that approach this extreme, are there any elements of the Aalsmeer flower auction that you find do not fit the model of perfect competition? So I would say some elements would be the price fluctuations, all buyers not be aware of the product and less direct contact.

There one of the perfectly competitive markets would be vegetables because the buyers are knowledgeable of the product there getting. There is not buyers or seller cost to purchase the product. As long as a market wants to be competitive it needs to share at least these five traits: Profit, dimishability, rivalry, includability and rejectability

https://2012books.lardbucket.org/books/microeconomics-principles-v2.0/s12-competitive-markets-for-goods-.html

https://en.wikipedia.org/wiki/Aalsmeer_Flower_Auction

Dakota Smith

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Dakota Smith posted Jul 21, 2020 7:56 AM

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I believe the Aalsmeer flower actions get as close as it gets to being a perfectly competitive market. There are no elements that I see that do not fit the model of perfect competition. According to their website there are thousands of buyers and sellers everyday. In fact according to Zaslabsky, there are almost 20 million flowers sold every day! That way no big market impact can be made by a buy or a seller. Identical products are being sold, flowers are flowers. There are no exit or entry barriers, it is a level playing field. Neither buyers nor the sellers have any information that the other doesn't. It is as close to a perfectly competitive market as it gets.

Agriculture was the example mentioned in our notes and in our reading but that is the easiest example of a perfectly competitive market. Another good example would be online shopping. Many times you can find identical products on many different websites. There are thousands of buyers and sellers. There are no entry or exit barriers and neither the buyer nor the seller has any advantage. Yes, Amazon has a huge market share but there are still thousands of competitors for those identical products that you can find on Amazon. It is as close to a competitive market as it gets.

See millions of flowers. (n.d.). Retrieved July 21, 2020, from https://www.royalfloraholland.com/en/about-floraholland/visit-the-flower-auction/aalsmeer/worlds-largest-flower-auction/see-millions-of-flowers

Zaslabsky, W. (2019, November 12). A Complete Guide to Aalsmeer Flower Auction! Amsterdam. Retrieved July 21, 2020, from https://amsterdamhangout.com/a-complete-guide-to-aalsmeer-flower-auction-amsterdam/

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