<..I am not familiar with all the MBA economic theories you guys are engaged in...>[GL] <..But, it is not even about supply and demand if one was to interpret those words as anything other than the discreet algorithm of economic "reality." That is a fine economic construct which we have been forced to sawllow and believe in. Capitalism does not have to be allocated the profit margins that one has got used to. Times are different, so the greed levels (or initiative levels) can and must change. But this system has indeed arrogated such profits to itself. OK , I am a fossil, but hear me out. Those monies always goes to the top executives; for doing what -- playing at supply and demand? Take most products and break them down, production wise, service wise, quality wise. After doing so, one is left wondering how does the pricing work! I do not mean the part about branding... Its about a kind of existence that is so voracious; although we are left with calling it supply and demand --- a construction of the meanest order -- which is the new reality. A few years ago, I observed the following separately over a duration of two hours each, at three fish markets in Goa. I saw people, including older folk who would just go in circles -- approaching fish vendors and then going away dejected. They would come back in 20 or so minutes, and go away. Why? With the prices going up (supply and demand) they were seeing the fish disappear right before their eyes, bought by people for whom those prices were acceptable. People of lesser means are seeing less and less show up on their tables> >[Venantius]
Maybe the idea of pricing according to what the market can bear fits the phenomenon described by Venantius. Those who can do that ae really onto a good thing. As regards Gilbert's idea of being innovative, there is the old saying "You cant teach an old dog new tricks". What does one do then?
