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Quality control is a common good in retail markets. In a healthy market, consumers don't care about top quality from medium quality. They might even go for low
by seventhtiger 7y ago
Quality control is a common good in retail markets. In a healthy market, consumers don't care about top quality from medium quality. They might even go for low quality if it's marketed well. Only the "pro" consumers or hobbyists care about these differences.
So there is profit to be made in price and quality race to the bottom. When the quality drops across the board those uncaring customers just leave the market. This has caused crises in other industries before. They don't care until they're gone, with the passionate hobbyist canaries leaving early.