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I manufacture 99% of the worlds widgets, you make 1% . I want to drive you
out of business, so I figure I'll lower my price until you go broke and then
I can jack them up to anything I want. So now you louse money on each widget
you sell, the trouble is I do too. I have 99 times as much money as you do,
but I'm lousing it 99 times faster. Even worse, because the price is very
low
the demand for widgets is huge, and if prices are to remain low I must build
more factories and increase production. I'm lousing money faster and faster,
meanwhile you just temporally halt production in your small factory and wait
for me to go broke. It won't be a long wait.
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OR YOU COULD JUST MAKE WIDGETS OBSOLETE EVERY FOUR MONTHS AND ENCOURAGE THE
SALE OF NEW FANCIER MORE POWERFUL FASTER WIDGETS