By: Dennis Arrindell (with a lil’ help of ChatGPT)

March 29, 2025.

As an economist, I tend to see market dynamics everywhere—even in the most unexpected places. Some people go on vacation to relax, but I find myself studying pricing behavior at coconut stands. And let me tell you, the Caribbean has some of the best real-life economics lessons you’ll ever experience.

Take my visit to Saint Martin in 2015, for example. I was strolling through the bustling streets, soaking in the sights, when I decided to buy a coconut from a vendor. She chopped it open, handed it over with a straw, and charged me $3. A bit pricey compared to my home country Curaçao (Dutch Caribbean), where in 2015 this would cost about three guilders (USD 1.70), but fair enough—tourist economy and all.

Later that day, I found myself on the French side of the island together with my father, where I spotted another coconut vendor. But this one was different. He wasn’t hustling for customers, shouting deals, or making sales pitches. No, this man was laying down stretched out in his floor mat, hat covering his eyes, exuding an aura of complete relaxation. You could tell by the amount of chopped coconuts scattered around him that he had made a good amount of money that day selling coconuts to cruise ship tourists.

I had to wake him up to buy a coconut.

When I asked for the price, he barely lifted his head and held up five fingers.

“Five dollars???! Sir, I just bought one in town for three dollars! And in Curaçao, it’s even cheaper!” I protested, expecting a negotiation, perhaps the start of a bargaining process.

His response? Without a word, he simply pulled his hat back down over his eyes and went back to sleep.

I was stunned. Not offended—no, no, I was in absolute awe.

This was not just a coconut vendor; this was a Caribbean grandmaster of supply and demand. He wasn’t there to sell. I was there to buy.

And that’s when it hit me: when demand is guaranteed, the seller holds all the power.

Think about it—why should he haggle with me when tomorrow, eight cruise ships will dock, spilling thousands of sunburnt tourists who’ve never had fresh coconut water before? For them, $5 isn’t just reasonable—it’s a bargain. Meanwhile, I was just another economist trying to apply logic where it didn’t belong.

This moment has stuck with me ever since. Not just because it’s hilarious (which it is), but because it perfectly encapsulates Caribbean business culture. We often assume that sellers should fight for every customer, but in places with a constant influx of high-paying tourists and strategically positioned vendors, that’s simply not necessary.

So the next time you find yourself arguing over prices in a Caribbean market, remember this: you are not in charge. The vendor decides. And if they don’t feel like selling? Well, they’ll just take a nap instead.

Lesson learned.

By: Dennis Arrindell (with a lil’ help of ChatGPT)
Secretary of the Dutch Caribbean Association of Economist (‘de Economenclub’)

March 29, 2025.