In <[email protected]>, on
03/08/2010
at 02:37 PM, George Henke <[email protected]> said:
>What is not just or equitable is for IBM to view EDS' efficiency and
>profits from "economies of scale" as a loss of revenue to themselves
>(IBM) and then create a pricing scheme that appropriates those profits
>from such efficiencies for themselves.
The hardware and operations sides may be a case of economy of scale, but
on the software side the story is very different. It's by no means clear
who was appropriating whose profits from whom.
>Since when have monopolies ever been interested in efficiencies except
>for their own profitability.
That applies to the megacenters as much as it does to IBM. Any well run
business is concerned with it's own profitability, and only concerned with
the profitability of its customers and suppliers to the extent that they
impact its own.
>Monopolies do not optimize the efficient allocation of resources in the
>economy. They maximize their own profitablity at the expense of
>efficient allocation of resources in the economy.
Albert Einstein admonished to make things as simple as possible, but no
simpler. The Devil is in the details. Google for "natural monopoly".
As for artificial monopolicies, they can abuse their powers but abuse is
not intrinsic.
--
Shmuel (Seymour J.) Metz, SysProg and JOAT
ISO position; see <http://patriot.net/~shmuel/resume/brief.html>
We don't care. We don't have to care, we're Congress.
(S877: The Shut up and Eat Your spam act of 2003)
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