... Based on practical hypothesis that, in the short-term, technological improvement can out-run market absorption capacity. ...
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Replying to @Outsideness
(this can only be true if demand curves for high-end chips suddenly don't work like anyone else's demand curves)
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Replying to @Alrenous
I don't see that. There's no problem with the market for high-end chips. It's the low-end of the market that drives the phenomenon. ...
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Replying to @Outsideness @Alrenous
... It's the mass-market (demand) bottleneck for state-of-the-art technological capacities that induces this strategy ...
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Replying to @Outsideness @Alrenous
... of temporarily gearing the product down to the qualitative threshold for which there's effective demand. ... i.e. ...
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Replying to @Outsideness @Alrenous
... Not gratuitously giving away that which already locally, and later generally, will be paid for.
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Replying to @Outsideness
If high-end demand is normal, no such bottleneck exists. Selling at a middling price gets middling+ sales, for more net profit.
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Replying to @Alrenous
What makes you think the low-end market would be elastic enough to accept a middling price? (The industry clearly doubts that.)
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Replying to @Outsideness
Why do you think the high-end demand is inelastic in price? Where's this discontinuity in the demand curve coming from?
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Replying to @Alrenous
Is it so hard to imagine a sharp discontinuity in the demand curve between affluent tech early-adopters and an easily-satisfied mass market?
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... That's the commercial history of the ICT industry. I'd expect it to be still more pronounced for electric vehicles.
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Replying to @Outsideness
You're right. Tesla is merely copying ICT. Only ICT is also only copying, and ironically enough only the middle child is wrong.
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