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Re: Some interesting economic facts
On Wed, 22 Apr 1998 20:12:13 -0400 (EDT), Matt Deatrick wrote:
> Yes, and for most software the prices are declining. My main point
>was that in economics Prices should equal marginal costs(the cost to
>produce one more unit). I am not in the mood to go through the whole thing
>again, but suffice it to say that prices are above marginal costs in most
>cases, even where they have fallen. Even though marginal costs in the
>software industry are so near to zero as to be inconsiquential
>theoretically. The argument, then, is that the reason M$ has had 20% plus
>profit margins, ie the reason Gates is so grossly wealthy, is because he is
>abusing our perceptions of quality by tricking the market. If it isn't
>expensive it doesn't work? Not in M$'s case.
> Matt
>
>
<snip>
My God, Matt: "...perception of quality..."? ...you sure got that right,
spot on!
How does one AMPLIFY that "perception of quality" that don't know
that other apps and OS's CAN be consumed with a "knife and a fork"
[or chopsticks, or properly with fingers]?
I'll tell you what I think the core problem is today: all the worker bees
have no time, and many big-bad-corporate entities want to keep it that way.
Erick