3 ms·
> It is a market failure as the markets fail to cater for the demand due to structural factors. The Market™ is perhaps going after higher margins. If you can c
by throw0101c 5mo ago
> It is a market failure as the markets fail to cater for the demand due to structural factors.
The Market™ is perhaps going after higher margins. If you can charge $200 instead of $100 for a widget, why wouldn't you?
Ideally at some point someone will see the margins and be motivated to go after some of it and offer things for $190, but the ROI on upfront fab costs given market risks may not be high enough for the business uncertainly that needs to be taken (boom-bust cycles).
No participant in The Market is obligated to "cater" to demand if they do not think the juice is worth the squeeze.
- mrtksn 5mo agoThat’s why it’s market failure, not some specific company failure