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I think nobody would call nerfing high-end chips for people with higher price sensitivity an optimal solution, but something gotta give. Either there's a lot of
by stdbrouw 14y ago
I think nobody would call nerfing high-end chips for people with higher price sensitivity an optimal solution, but something gotta give. Either there's a lot of consumer surplus (cheaper prices for better products), or there's a lot of producer surplus through market segmentation (bigger R&D budgets, better products in the long term). You can't have both.
This problem is more obvious with software, by the way: higher-end SaaS plans may cost marginally more (storage, support) but they're really mostly about price discrimination: getting people who can pay more to pay more even if you could provide all your customers with the top-tier experience.