> Loss-leader. Allows them to advertise a low base price, but most people will pay more. They wouldn't risk it in this case, for such a high cost item. It make

> Loss-leader. Allows them to advertise a low base price, but most people will pay more. They wouldn't risk it in this case, for such a high cost item. It makes no sense for the marginal cost of the heater, the base price would just be marked above the cost. > It’s a car seat heater. It’s a luxury. Nothing as dramatic. Way to miss the point. Thought experiments are dramatic so as to make the principle obvious: just because you've increased the set of possible choices does not mean you've added value. That's the case with the thought experiment and with subscription seat heaters. That's why it's a false choice, the value has already been added by economies of scale, and BMW is trying to profit more without any effort by removing that added value. As I already explained, we want innovation from effort that encourages progress, not profiteering from artificial scarcity. Skewed incentives that don't result in progress should be criticized and corrected.