5 ms·

Terrible for the uneducated consumer. If you are heavily invested in buying a new laptop (spending $1,000 and enjoy researching laptops) then you stand to signi

by soared 8y ago

Terrible for the uneducated consumer. If you are heavily invested in buying a new laptop (spending $1,000 and enjoy researching laptops) then you stand to significantly benefit. Every uneducated consumer who buys an overpriced laptop subsidizes the cost for an educated buyer who heavily researchers and finds a good deal. Not fair to 90% of consumers, but most industries work this way.

pessimizer 8y ago
> Every uneducated consumer who buys an overpriced laptop subsidizes the cost for an educated buyer who heavily researchers and finds a good deal. What economic motivation do laptop manufacturers have to compensate for uneducated consumers making particularly bad deals by offering models that are particularly good deals? It isn't a zero-sum game. What educated buyers are getting in this case are less-bad deals, especially because the retailer knows that if they hold the laptops long enough they can eventually sell them to an uneducated consumer. All buyers would benefit from easier quality comparison, although educated buyers would benefit less. The law of averages isn't a law and there can be a market for lemons.
- dizzystar 8y ago
  The fact that it's not a zero sum game is exactly why it would work. Laptop manufacturers are far from the only ones who use this and similar strategies. This permeates nearly every buying decision we make.
chiefalchemist 8y ago
Researching takes time. Nothing is free, especially not time. Time is money. Unless the savings is significant, it's likely all factors of economics considered, that both are paying about the same; getting the same value / bang for buck. True, the higher end models might be more profitable to the manufacturer, but that's likely due to less competition at that end of tbe market. That doesn't make the higher end buyer more educated.
mmirate 8y ago
Simple solution: be educated. I suspect this is fairly easy for most HN readers.

by soared 8y ago

pessimizer 8y ago

> Every uneducated consumer who buys an overpriced laptop subsidizes the cost for an educated buyer who heavily researchers and finds a good deal. What economic motivation do laptop manufacturers have to compensate for uneducated consumers making particularly bad deals by offering models that are particularly good deals? It isn't a zero-sum game. What educated buyers are getting in this case are less-bad deals, especially because the retailer knows that if they hold the laptops long enough they can eventually sell them to an uneducated consumer. All buyers would benefit from easier quality comparison, although educated buyers would benefit less. The law of averages isn't a law and there can be a market for lemons.

dizzystar 8y ago
The fact that it's not a zero sum game is exactly why it would work. Laptop manufacturers are far from the only ones who use this and similar strategies. This permeates nearly every buying decision we make.

chiefalchemist 8y ago

Researching takes time. Nothing is free, especially not time. Time is money. Unless the savings is significant, it's likely all factors of economics considered, that both are paying about the same; getting the same value / bang for buck. True, the higher end models might be more profitable to the manufacturer, but that's likely due to less competition at that end of tbe market. That doesn't make the higher end buyer more educated.

mmirate 8y ago

Simple solution: be educated. I suspect this is fairly easy for most HN readers.