Commoditize the complement
added by King · updated 2y ago
added by King · updated 2y ago
complements If two goods are complements a decrease in the price of one good leads to an increase in the demand for the other good.
sari added
What is the cure? From A’s point of view, one cure is to have many competing producers of good b. Competition will then hold the price of b close to cost (including a reasonable return on capital) regardless of A’s pricing, so that A both effectively determines the system price (via the price of a) and captures all the economic profit. Generally, i
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