Re: Bundling and operating systems

[Mitch Stone <mstone@vc.net>]

--- From a message sent by Eric Lee Green on 12/19/99 12:10 AM ---

>I think this is the essential difference between law and economics. Economics
>is concerned with the overall impact of actions. Law is concerned with the
>effects of actions upon one specific person.
>
>For example, VW USA has made the decision that all VW New Beetles sold 
>here in
>the United States shall be sold with air conditioning. Now, folks in 
>Wisconsin
>do not need air conditioning,.But the fact remains that the majority of
>consumers want air conditioning in their car, and it was not economical 
>for VW
>USA to produce cars without air conditioning just for the Wisconsonites out
>there.
>
>Should Wisconsinites be able to sue VW USA for this bundling? After all, they
>are clearly getting harmed... they could buy the car for $300 less if not for
>the air conditioning! 
>
>But from an economic point of view, it is more cost-effective, because the
>average consumer gets his air conditioning for less, because it costs less to
>put the air conditioning on at the factory than it would take for dealers to
>install it separately (due to the fact that they have to remove the radiator
>etc. to install air conditioning on un-air-conditioned cars).  The average
>consumer saves approximately $200 due to this bundling. 
>
>What I see you saying, Lewis, is that  if there are 9,999,999,999 people who
>benefit from bundling, and 1 person who is harmed by bundling, this is an
>actionable item even if the "harm" is just $10. I'm sorry, Lewis, but that's
>the sort of reasoning that gives lawyers a bad name.

Eric, the reason you're not hearing much support for your viewpoints is 
not because we don't agree. Speaking for myself, at least, I believe you 
are 100% correct, and I believe others feel likewise. And you have 
articulated the points succinctly and lucidly, which is entirely to your 
credit. No, the reason we stay clear of the fray is because we are simply 
bone-weary of Lewis Mettler's broken record approach to this question. 
You will soon learn (I sincerely hope) that his position is inflexible 
and absolutist in the extreme, and that he will reject out of hand all 
data which does not conform to his rather bizarre theories. Further, if 
you persist in making your case, he will also alternatively question your 
intelligence and accuse you of self-interested bias, which are his other 
methods of figuratively clamping his hands over his ears.

Mitch Stone
mstone@vc.net