Tuesday, 9 August 2011

Economics and the greater good

Slow and steady wins the race in economics. More people make more money on average when businesses run by trying to keep customers by treating them well and giving them a good deal. The problem is that one company can make more money in the short term by treating their customers somewhat badly, locking them in and crushing the opposition like bugs. The long-term effects of such lock-in are stifled innovation and loss of goodwill. That means the users won't trust a new competitor and the existing monopoly has no incentive to do anything different.

Mokalus of Borg

PS - This should be taken with a grain of salt since I am not an economist.
PPS - Unless taking one subject ten years ago counts for anything.

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