3 ms·
Seems like a really inefficient system. Bringing down the price of a finished good requires another entity's ability in making a separate clone of it?
by mattacular 6y ago
Seems like a really inefficient system. Bringing down the price of a finished good requires another entity's ability in making a separate clone of it?
- tenacious_tuna 6y agoI'm not sure how that's inefficient, it's pretty normal market dynamics. If the demand for a thing is high enough and the supply is low (or artificially controlled), then the provider can just freely set the price wherever they want. Enter a competitor, and now the competitor has incentive to undercut the original producer to capture their market segment, and then it's a battle between the two between the cost to produce, market price, and value of the good to consumers. I suppose there's 'inefficiency' in that both producers are now providing identical goods, but very rarely are the goods actually identical. In this case there's also the surrounding product ecosystem of Apple and Google, which is a significant difference at the very least.
- mattacular 6y agoI guess I will eagerly await the price drop from these highly competitive products that aren't designed to be used in the others ecosystem.