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From: drv@mtx5w.UUCP
Newsgroups: net.taxes
Subject: Re: Re: Companies *do* pay taxes
Message-ID: <756@mtx5w.UUCP>
Date: Thu, 25-Sep-86 14:17:24 EDT
Article-I.D.: mtx5w.756
Posted: Thu Sep 25 14:17:24 1986
Date-Received: Fri, 26-Sep-86 18:48:02 EDT
References: <1354@drutx.UUCP>, <755@mtx5w.UUCP> <1377@drutx.UUCP>
Organization: AT&T Information Systems, Middletown, NJ 07748-4801.
Lines: 28

> Brian wrote:
> >> A customer making a choice between equivalent products made by
> >> competing companies will choose the least expensive one (at least
> >> according to the "rational person" premise of economic theory).
> 
> I replied:
> > I don't know what all the "rational person" premise says,
> > but I do know from a few marketing courses that price
> > isn't the only factor a person considers when making a
> > purchase decision.  Any argument that starts from that
> > premise is suspect in my mind.
> 
> Brian replied:
> The "rational person" premise states that people will choose a course of
> action based on minimizing their costs and maximizing their benefits.
> In an oversimplified phrase, "get the most for your money".
> But...
> This really has nothing to do with my argument, which is based on two
> companies with basically equivalent products (and equally effective
> marketing, if you care to add that).

OK, I missed a key assumption in your original; namely that the choice
is between two "as equivalent as can be made" products.  I agree with
your analysis under that condition.

Dennis R. Vogel
AT&T Information Systems
Middletown, NJ