Re: Bundling and operating systems

["Simon Cooke" <spectecjr@hotmail.com>]

>From: "Lewis A. Mettler" <lmettler@lamlaw.com>
>Bundling always causes two affects:
>
>1) the price in increased to cover the cost
>2) choice is removed from the consumer in both the short and long run

There's a logical fallacy in both points.

(1) What happens if the price remains constant? Or if the cost drops? The 
retail-store cost of Windows (3.1, 95, 98, 98SE) has dropped over the years. 
Windows 98 has IE included. It costs approximately the same as Windows 95 - 
and that's BEFORE you take into account inflation, in which case it costs 
less.

As has been said before over and over and over and over and over and over 
when you made this SAME argument over and over and over and over and over 
(and were allegedly "censored" for) on MSNBC's Tech BBS, products are priced 
at what the market will bear. The cost of a product bears only very little 
resemblance to what it sells for - or rather, it sets a floor. And then 
there's the completely contrary mechanisms which don't appear on the face of 
it to make sense - such as rebate deals whereby you can buy - say - a surge 
protector at CompuUSA for $15, with a $15 rebate.

The thing is Lewis, you continuously ignore this side of the equation. Which 
in fact, invalidates your argument. If I were you, I'd spend more energy 
considering how this behavior affects competitors, rather than consumers, as 
the harm to consumers is NOT found in their pocketbooks.*

(2) choice being removed in the short & long run?

In the long run? Maybe - if it puts competitors out of business.
In the short run? No way - or rather, you always have the ultimate choice - 
don't buy that thing. Vendors sell what *they* want to sell - not the other 
way around. If you want special treatment, talk to the vendor. If enough 
people want that option, it will magically make itself available.

Simon
*Note: I'd say there's no harm at all to the majority of consumers... but 
that's me.


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