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URL:  http://boards.fool.com/forgive-me-gadawg-but-youll-have-a-tough-time-16826021.aspx

Subject:  Re: Oysters Date:  3/1/2002  4:32 PM
Author:  GADawg Number:  20507 of 55855

Forgive me, GADawg, but you'll have a tough time convincing me that the oysters you get in places like Savannah, Mobile, and New Orleans are anything like the ones you find shipped in in the Midwest.

I agree that it's counterintuitive, but it's true nonetheless. If you've ever had an economics course, you'll recognize the terms I'm about to throw out.

It's all because of relative prices. If oysters cost $1.00 for good ones and $0.50 for bad ones in coastal cities, then people who choose to eat a good oyster are giving up the opportunity of eating 2 bad oysters.

But shipping these oysters to inland areas adds equally to the price. Say that transportation costs mean that in Nebraska a good oyster is $1.50 and a bad oyster is $1.00. This means that in Nebraska, the choice to eat a good oyster means giving up the opportunity to eat just 1.5 bad oysters. Since the Nebraskan faces a lower relative price for good oysters than a Floridian, the Nebraskan will consume more good oysters. This means the overall quality of oysters in Nebraska will be higher than in Florida.
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