[ Post New Message | Post Reply to this One | Send Private Email to Leopold The Cat | Help ]

Response to Comments: /Econ_Articles/newecon.htm

from Leopold The Cat (leopold_the_cat@yahoo.com)
I am kinda confused about the rivalry implications of Internet economy. Goods always include fixed cost of know- how that gets amortized over the set of consumers. For intellectual property this fixed part of the cost happens to dominate the per-unit part. This is also true for, for example, books or records. Internet commerce lowers the transaction costs for both digital goods and "meatware". Still, since the market for any good has fixed size, I do not see how it follows that the per-unit price artificially restricts the distribution. Some people are not going to buy the song you produced for any amount of money so you have to amortize your production costs over the population of prospective consumers. Whether distribution cost is near- zero (Internet sale) or not (CD) does not really matter.
(posted 8730 days ago)

[ Previous | Next ]