0

I am writing a document for which:

  1. there are companies that set a price for the service they provide
  2. there are users that set the price for which they are willing to pay for the service

Can I call the offer (1) "bid" and the demand (2) "ask"?

Or other terms are used in this case?

closed as off-topic by JoeTaxpayer Apr 25 '17 at 11:04

  • This question does not appear to be about Personal Finance within the scope defined in the help center.
If this question can be reworded to fit the rules in the help center, please edit the question.

  • I'm voting to close this question as off-topic because this doesn't relate to personal finances. – JoeTaxpayer Apr 25 '17 at 11:04
3

That sounds fine to me...certainly it means the right thing, even if it may not be the most common way to describe it in a non-financial context.

Instead of "ask" you can use "offer price." Both of these may also be called "reservation prices." If you use that, you will also have to specify which one you are referring to. For example, "the seller's reservation price was X, which exceeded the buyer's reservation price by 10%." If there are not a lot of service providers, you can just call the seller's side the "price" and the buyer's side the "reservation price."

The right jargon kind of depends on who the audience is. If you are talking to economists, any of the terms I mentioned will be natural.

Not the answer you're looking for? Browse other questions tagged or ask your own question.