Re: keyboard/mouse programming


"Robert Redelmeier" <redelm@xxxxxxxxxxxxxxx> wrote in message
news:qKK3j.3518$Dt4.2910@xxxxxxxxxxxxxxxxxxxxxxxxxxxxx
So from that perspective, capitalism, defined as attempting to
earn a profit on some product or service, becomes the ability
to reduce your costs to maximize your profit spread or the
ability to raise your competitors costs to encourage them to
raise overall market prices to maximize your profit spread,
i.e., RRC. If there is a 50/50 split (you/them) between
the two and RRC is declared to be illegal for all companies,

I doubt RRC would be declared illegal behaviour in the
absence of pricing power. I furthermore doubt the split
would be anything like 50/50 . RRC is extremely difficult
to perform effectively.


I edited out my, perhaps biased, belief in a 35/65 split to keep it
theoretical. I take it you think the numbers are reversed? 65/35, 70/30?
or very low 90/10?

I'm not so sure about it being that difficult to perform considering that
the large corporations in a monopoly or oligopoly will frequently consume
all of or nearly all of the entire supply of a specific product used as
industry input. I.e., the buyer is or a few buyers are controlling both the
demand (what they buy) and supply (what they tell the supplier they need
produced) of an input resource. Despite economic models which suggest
otherwise, the supplier isn't going to produce any extra supply because it
costs the supplier money for storage until the product is saleable, i.e.,
loses money for a week, month, quarter although per unit costs may have been
lower. If one buyer suddenly increases demand (buys more), the competitor's
costs go up (in a free market) or the competitor gets shorted or delayed
product (fixed price and volume contracts) and, again, the competitor's cost
go up but due to rescheduling production. This can be done legitimately due
to valid demand or illegitimately to hurt competitors at an opportune
moment. A high percentage of the products used as inputs to the automotive
industry are from monopolistic or oligopolistic industries. They usually
only have a single supplier in the entire world. In very rare cases, you
may have upto three suppliers. I'd suspect that parts of the circuitry
industry are the same, perhaps silicon production (but don't know for
sure...).


Rod Pemberton

.

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