Re: International Pricing Policy

I.P. Nichols wrote:

You mock me, but it is a bedrock principle of economics: Price is
driven by supply and demand. Costs have nothing to do with price.

The problem with your statement is, "Costs have nothing to do with
price" which is absurd. As my authority I cite George Stigler who won
a Nobel Prize for Economics and authored the seminal text, "The
Theory of Price".

Not absurd at all, *Demand* (lack of it) can push the price *below* cost.
That right there shows there is no connection. Of course if that happens, in
most cases, one will stop producing that good.

To put it another way, whatever it costs to produce your product has no
bearing on whether or how much potential customers are willing to pay for
it. If I come up with my own new computer that has 640K of ram and a floppy,
and it costs me $5000 to build it, how many do you think I'll sell today at
= $5000?

If Stigler disagrees with that, you'll have to quote or link the pertinent
passages.

--
Wayne Niddery - Winwright, Inc (www.winwright.ca)
"Light is faster than sound, which is why some folks appear bright
before they speak."


.

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