Re: Some interesting economic facts

["Katharine M.J. Osborne" <kosborne@rocketmail.com>]

---Mitch Stone <mstone@vc.net> wrote:
-snip-
> So my question is this: trading a typewriter for a word
processing 
> application would expect to carry a large value added.
But shouldn't it 
> be larger than trading one word processing application
for another, which 
> is mainly what we're doing today? In other words,
shouldn't the cost of 
> word processing applications be declining?
> 
>    Mitch Stone

I've never bought such an application, but I assume that
prices are either level or increasing. I would have to
agree that since the relative added value in these types
of products are negligible or even superfluous that the
cost should be declining. However, one must take into
account that people are willing to pay a certain price
because that's what they expect to pay. After all, when
new models of typewriters came out over the decades their
prices did not decine.

KaOs
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