Re: PS2 weirdness, cont.

[Robert Frommer]

Only if the playstation 2 is inifinitely lived and there is no declining
marginal utility on the unit.

----- Original Message -----
From: Bryan Caplan <[EMAIL PROTECTED]>
To: <[EMAIL PROTECTED]>
Sent: Wednesday, December 20, 2000 9:17 AM
Subject: Re: PS2 weirdness, cont.


> Eric Crampton wrote:
> >
> > Reflection of time preference.  When the things first came out, the time
> > at which one could be expected to be had at the stores was far off.
Now,
> > it's not so far off and so prices are lower.  Will converge down to
> > MSRP....
>
> You don't even need time preference.  Consider for example a billionaire
> with no time preference (beta=1).  He values his Playstation at a
> constant $10,000/month.  Thus, even without time preference, he'd pay
> $20,000 to get the Playstation two months sooner.
> --
>                         Prof. Bryan Caplan
>        Department of Economics      George Mason University
>         http://www.bcaplan.com      [EMAIL PROTECTED]
>
>             "A man should be sincere, and nobly shrink
>              From saying anything he does not think."
>                    -- Moliere, _The Misanthrope_
>
>