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Planets would have to align to make hoarding profitable for producers. Consider: - The firm would need to choose potential future income over current income i
by bmm6o 13y ago
Planets would have to align to make hoarding profitable for producers. Consider:
- The firm would need to choose potential future income over current income i.e. not need the cash flow and have no good way of investing that money (internally or externally)
- Current sales would have to cannibalize future sales, or else they would sell now and in the future
- The value of the future sale would have to be discounted by the chance that the customer buys from a competitor. So either you're talking about a monopoly or staggering inflation
I don't see this ever happening under what anyone would consider acceptable levels of inflation. What annual rate do you think you'd have to see before this makes any sense?