4 ms·
Given that a vibrant "secondary market" often or even always increases the value of an item (video game, DVD, car, computer) because you can turn around an rese
by bediger 15y ago
Given that a vibrant "secondary market" often or even always increases the value of an item (video game, DVD, car, computer) because you can turn around an resell something if you no longer want or need it, why do some corporations insist on absolute control over reselling? Aren't they economically shooting themselves in the foot? They won't sell as many items at any given price, I'd think.
- pwg 15y agoBecause "they" don't see a vibrant secondary market as an increase in value of "their" product, but rather as a damper upon the maximum price with which "they" can charge for the product. I.e., "they" want to be a monopolist, and charge the resulting monopoly prices, and a vibrant secondary market prevents the charging of monopoly prices.
- deleted 15y ago[deleted]
- bediger 15y agoSure, they can charge a monopoly price, and maximize their profits under a monopoly assumption. But with a good secondary market, can't they charge more, given that the product in question has more value?