Re: Free Market Economics

Bobby Whalen (
Fri, 11 Jul 1997 11:45:42 PDT

On Thu, 10 Jul 1997 John K Clark wrote:

>Nobody has a gun to your head, if you don't like the new "bloated"
>then don't buy it and stick with the old one. If many really felt that
>Microsoft would be out of business. They're not.
They're not out of business because they ARE the business. What people
feel about Microsoft is largley irrelevant to what choices they have
when buying a computer. Between the advertising of Intel and Microsoft
a new computer buyer thinks that if it din't say "Intel Inside" it's not
a computer.

>Being small is absolutely no excuse for not being competitive. I
>99% of the worlds widgets, you make 1% . I want to drive you out of
>so I figure I'll lower my price until you go broke and then I can jack
>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
>lousing it 99 times faster. Even worse, because the price is very low
>demand for widgets is huge, and if prices are to remain low I must
>more factories and increase production. I'm lousing money faster and
>meanwhile you just temporally halt production in your small factory and
>for me to go broke. It won't be a long wait.

With regards to Rockefellers tactics, your facts of history are wrong.
Rockefeller did not have to lower his prices everywhere - <only in those
places he was opening new gas stations>. History shows this worked
quite well to his advantage.

I have to make one very important point. Since we don't actually live
yet in a free-market economy, all we can do is speculate as to how it
might work; thus my questions are theoretical. My intention is to
increase my overall comprehension of free-market economics. By doing
so, I am taking on the roll of 'devils advocate' to see how others on
this list can respond to any holes I might see.

So far, people have made some pretty fair arguments regarding Microsoft
- although I still think some of Microsoft's historical tactics of been


Bobby Whalen

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