6 ms·

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

• xnx 3mo ago
  This is not a theory of market competition that I've heard before.
  • kasey_junk 3mo ago
    It’s also an usual use of the term arbitrage
    • nok22kon 3mo ago
      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
  • nok22kon 3mo ago
    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 3mo ago
      Agree. The less "stuck" a customer is to a given provider, the more that prices should equalize between providers.