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Im not sure thats a useful model -- google would be in this case bringing in money from one market (eg ad revenue) to overprice in another market (self driving
by setr 6y ago
Im not sure thats a useful model -- google would be in this case bringing in money from one market (eg ad revenue) to overprice in another market (self driving r&d)
If walmart takes its surplus capital and decides to sell toilet paper at a loss, to run everyone else out of business (till they're the last man standing), I'm not sure its correct to say that the market value of TP has reduced during that time period. Walmart has undercut the market value (the point where buyer and sellers generally meet) -- it hasn't actually changed the market value, except temporarily, in whats effectively a hack. The permanent shift in this case would occur when the dust has settled, and all competition has been eliminated
- vosper 6y ago> it hasn't actually changed the market value, except temporarily, in whats effectively a hack All market values are temporary. Walmart absolutely has changed the market value in this scenario. It might be anticompetitive in the Walmart example, but in the case of one company paying their staff better than another I don't think the company paying less and complaining about it is going to get much sympathy :)