3 ms·
Barrier to entry/market penetration meets the 10+ year amortization schedules of six/seven/eight figure machinery.
by astockwell 3y ago
Barrier to entry/market penetration meets the 10+ year amortization schedules of six/seven/eight figure machinery.
- scythe 3y agoI believe it could also be argued that some fraction of the value created by repairability is in fact an externality. Your standard rational pricing model uses exponential discounting. A farmer does not necessarily expect to be in business for the entire useful lifetime of a tractor. But the resold tractor provides potentially more value to the economy if it is easier to fix. I.e. the initial buyer's discount rate should be higher than the overall society's discount rate, because they get most of the value from using the tractor, not its resale, but society gets more value if the tractor can be used longer by other farmers. This mostly applies to tractors that, today, are too old to violate R2R. But someday, the tractors sold today will be that old.
- jollyllama 3y ago+1 For actually attempting to answer the poster's question. Seeing five replies to the effect of "it just can't" was frustrating.