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From an economic perspective, regulation is the right thing here. Free markets work well with 100% transparency. That's the assumption in Adam Smith's models.
by blagie 4y ago
From an economic perspective, regulation is the right thing here.
Free markets work well with 100% transparency. That's the assumption in Adam Smith's models. If I buy a printer, and have complete awareness of the pain it will cause me and the long-term costs, and choose to spend $50 over $100, the free market is working fine.
If I go into a store and can't buy a printer without spending hours reading web pages (thousands of dollars of my time), and buy an inferior option due to intentional opacity, we need regulation.
This is very much the latter and not the former.
Airlines have better transparency than printer makers, by far. I might get ripped off on luggage, but I usually know that buying the ticket. I have no way to know a printer will disable itself in 6 months unless I pay HP off.
I blame Carly Fiorina for cannibalizing HP. Before her, it was a brand you could trust. After her, it's scam after scam. Before her, it had solid and unique R&D and brilliant people wanted to go there. After her, not a single competent engineer will work there. In the meantime, HP stock has not kept up with inflation. HP was just above $20 in 2007, and now it's just below $30. It has no fundamentals or competitive advantage in any real way.