Path: utzoo!utgpu!jarvis.csri.toronto.edu!torsqnt!tmsoft!masnet!f526.n250.z1.fidonet.org!wayne.ho
From: wayne.ho@f526.n250.z1.fidonet.org (wayne ho)
Newsgroups: comp.sys.ibm.pc
Subject: Re: IBM vs. Mac - Long (was Re: Xerox s
Message-ID: <89122400351638@masnet.uucp>
Date: 23 Dec 89 04:31:00 GMT
Organization: Fidonet node 1:250/526
Lines: 47


 >
 > BoCoEx prices aren't based on the manufacturers, but upon
 > users
 > willingness to pay.  It's a "free market" in secondhand
 > gear.  The Mac II
 > commands a higher price because people are willing to pay
 > more.  Had IBM
 > set the list price of the AT339 at $30,000, it would still
 > sell at $1825
 > today, because that's what people are willing to pay.
 
First of all what is BoCoEx (excuse me for my ignorance)?  Is this 
completely accurate?  Prices are partically set due to the willingness 
to pay (on the side of the consumers) but it also deals with the laws 
of supply as well (this is the manufacturers).  Prices in the "free 
market system" are determined by the laws of supply and demand not 
just the willingness of the consumers to pay for the item (this has 
a lot to do with it though).

 

Depending on whether or not the good (in this case the computer) is 
an elastic product or inelastic product the manufacturers may have 
more control over the prices.  Also if there is a monopoly of some 
sort the company is able to control prices a lot easier as well, due 
to a lack of competition.  Apple seems to have a pretty good monopoly 
as there are very few (if any?) clones for MACs.  On the other hand, 
there are tons and tons of IBM clones.   Some products, say penecilin 
for example, is needed and people will buy this product no matter the 
price (as long as they can afford it.. ceteris paribus though!)  Other 
products may not sell as well if the producers raise prices too high. 
There are so many reasons for prices, such as alternative products, 
etc., etc.
 
Correct me if I'm wrong, but in your statement it seems to me you are 
saying people believe the MAC is valued higher than an IBM.  I don't 
think it is absolutly correct to say "because MACs are more expensive 
they are better" (I don't want to put words in your mouth, so correct 
me again if I'm interpreting it incorrectly).  Well anyway, I can't 
remember everything I have learned about supply and demand but hopefully 
I have stated everything correctly.
 
                                        Wayne

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