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Internet Message Format  |  1992-12-29  |  1.5 KB
  1. Xref: sparky comp.os.os2.advocacy:11094 comp.os.ms-windows.advocacy:3509
  2. Newsgroups: comp.os.os2.advocacy,comp.os.ms-windows.advocacy
  3. Path: sparky!uunet!zaphod.mps.ohio-state.edu!cis.ohio-state.edu!pacific.mps.ohio-state.edu!linac!att!news.cs.indiana.edu!noose.ecn.purdue.edu!ecn.purdue.edu!helz
  4. From: helz@ecn.purdue.edu (Randall A Helzerman)
  5. Subject: Re: Is Microsoft the next Standard Oil?
  6. Message-ID: <1992Dec29.194407.13490@noose.ecn.purdue.edu>
  7. Sender: news@noose.ecn.purdue.edu (USENET news)
  8. Organization: Purdue University Engineering Computer Network
  9. References: <1992Dec22.113330.22921@noose.ecn.purdue.edu> <1992Dec27.191705.7069@gw.wmich.edu> <1992Dec29.015526.3909@noose.ecn.purdue.edu> <1hpr2dINN80o@tamsun.tamu.edu>
  10. Date: Tue, 29 Dec 1992 19:44:07 GMT
  11. Lines: 14
  12.  
  13. In article <1hpr2dINN80o@tamsun.tamu.edu>, bdubbs@cs.tamu.edu (Bruce Dubbs) writes:
  14.  
  15. |> How about the situation when they charge more than the minimum for a
  16. |> "reasonable" profit, but not enough for someone else to afford the R&D
  17. |> costs to enter the market.  Startup costs, before you have a product
  18. |> and before you have name recognition, are not negligible.  This
  19. |> situation keeps prices high and the end consumer pays.
  20.  
  21. |> You will probably ask: What is "reasonable"?  A fair question. 
  22.  
  23. Under your scenario above (where Standard Oil keeps prices low enough that
  24. others are discoureged from entring the market) I would say that Standard Oil
  25. was charging a reasonable price.  If nobody can beat your price, then you've
  26. certainly got a reasonable price.
  27.