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Standard oil used to dump product in competitive markets too. Low prices do not preclude a monopoly nor does the existence of some competition.
by jdsully 7y ago
Standard oil used to dump product in competitive markets too. Low prices do not preclude a monopoly nor does the existence of some competition.
- briandear 7y agoSo hundreds of thousands of app developers are conspiring to keep app prices low? That would involve coordination which is essentially impossible for the numbers of app developers. The developer of Tiny Wings isn’t calling Rockstar Games to agree on prices. Without such coordination, there isn’t any “dumping.” Standard Oil was a sole supplier, while the App Store has thousands of suppliers who all set their prices based on what the market supports. A dumping argument in this case makes no sense since Apple does not set app prices.
- jdsully 7y agoIt’s perfectly normal to dump product if it drives sales of your main product. In this case it’s the iPhone that benefits from cheap apps. The App Store has been instrumental in keeping prices down - a major way they do this is by not allowing demos. Who’s going to risk $50 without seeing it first? I’d refer you to this Joel Spolsky article which explains it: https://www.joelonsoftware.com/2002/06/12/strategy-letter-v/ https://www.joelonsoftware.com/2002/06/12/strategy-letter-v/ You see this strategy everywhere in tech. It’s not by accident.