Re: Price gouging is beneficial. Price gouging is great!

Cary Kittrell wrote:
> In article <[EMAIL PROTECTED]> "Robert N. Newshutz" <[EMAIL PROTECTED]> writes:
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> <Alberto Moreira wrote:
> <
> <> Said  "Robert N. Newshutz" <[EMAIL PROTECTED]> :
> <> 
> <>  
> <> 
> <>>Then I don't think gouging should be used as an excuse to regulate M$.
> <> 
> <> 
> <> The issue with MS isn't gouging, it's monopoly and potentially
> <> predatory practices to hold that monopoly and ward off potential
> <> competition. It's a pity that ever since the sixties hit us we've been
> <> running scared from just about every little bogeyman in the closet,
> <> and as a consequence we have relaxed the enforcement of many of our
> <> high principles and laws: and one of those is the antitrust law. Like
> <> I said before, the issue with gouging is simple: in a free market
> <> gouging is not possible because the customers can choose. But if the
> <> market isn't free, because there's either a monopoly or an oligopoly,
> <> gouging is easy enough. Yet, you see, MS doesn't gouge, they do
> <> precisely the opposite: they wallop you with value and attach a huge
> <> amount of freebies to software that they sell for peanuts, but in
> <> doing so they raise the R&D ante so much that it's real hard for
> <> anyone to compete in a commercial scale. 
> <> 
> <
> <Interesting, lots of value for low price makes it hard on the 
> <competition.
>
>
> If I produce vormzoligs that are as good or better than yours,
> and I sell them as cheaply, or cheaper, then that's good.
>
>
> If I have six hundred thousand vormzoligs in stock, and you
> have fifty, and I give mine away until you are forced
> out of business, that may not be good.  

Unless vormzoligs are perishable even once out of
business he can re-enter with 50 items easily so
you're stuck either always giving them away or
giving them away and spending on R&D to make the
next gen vormzolig that makes those other 50
obsolete.

just as bad for you in that strategy--since all
producers are losing in that game on would think
producers would learn to stop playing it.

jmh
jmh