Posted by Rick Denney on April 10, 2003 at 21:25:37:
In Reply to: Re: Re: Re: Re: Re: Re: Re: Awesome CDs and Yorkbrunner for Sale! posted by js on April 10, 2003 at 20:42:37:
I did consider Peter's production capacity. If you can only make a few of something, then anyone who owns a business will want to sell those items to the richest few buyers. But who knows if Hirsbrunner might have been able to judiciously increase that capacity at a faster rate than he has if his marketing in the U.S. was more broadly based? We don't know and we can't know because the market hasn't been allowed to work fully. It might be that the proper price is higher.
My argument was against the notion that we should feel sorry for Fred because how would we like to have our cherry exclusivity deal taken away from us? Fred has made himself a good deal, perhaps. Good for him. I am not judging him at all, and would in the same circumstances probably try to do the same thing. But his reward is his profit margin. He doesn't need my sympathy.
Rick "who explained market-based pricing a while back" Denney