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URL:  https://boards.fool.com/hi-capitan-some-of-your-comments-boggle-the-24991393.aspx

Subject:  Re: Here's your chance: Balance the Fed budget Date:  1/2/2007  8:17 PM
Author:  Dwdonhoff Number:  200192 of 603176

Hi Capitan,

Some of your comments boggle the mind..... if I may?

"unique value" rarely exists.

Huh? In which universe are you referring to??? I challenge you to find even ONE example where it is impossible for a consumer to perceive a unique value distinction!

Realize that in endless cases of marketing studies, retailers have proven that merely PLACING two exact identical grocery products (such as identically labeled green bean cans) at different vertical eye levels on a grocer's shelf can make a difference of 1-7 cents.

Perfectly free, non-coerced, non-influenced, discretionary consumers (on average) will choose the more expensively marked (from up to 7 cents more expensively marked) identical grocery items merely due to the PERCEPTION of a "unique value" of relative convenience... something with no inherent relationship even to the item in question itself!

As long as you are referring to a universe where the decision is a human decision, you cannot eliminate the distinguishment of unique value.


That is the meaning of overcapacity.

Huh?
WHAT is the 'meaning' of overcapacity?
WHERE are you conjuring "overcapacity" from? It hasn't been in the thread at all...


Competition and profits are opposites.

No, this is wrong. Competition and Profits are wedded bedfellows.

Without competition a provider will wither and die while it's consumers learn to ignore it's failure to sharpen it's offerings.

WITH competition all participants are called to their most efficient, effective, and capable delivery.

Competition is the leader's AND the laggard's best friend, and absolutely required for profits.


Under perfect comepetition there are no profits.

This is impossible. It's like saying "in a perfect basketball game nobody scores anything."

Without profits, there are no competitors.


Competition creates overcapacity.

Only in that bizarre alternative universe where consumers and providers are something other than humans.

No competitor can afford to waste resources beyond the bare minimum. Overcapacity, by it's definition, is a waste of resources. The concepts are self-cancelling.

There is too much of almost everything relative to the purchasing power of consumers.

Again... only in a non-parallel universe of some bizarrely imaginary reality. "Too much" implies accepted and acceptable waste, which competion abhors, ESPECIALLY in free, unrestrained capitalistic markets.

Waste doesn't produce value for the buyers. It destroys value so that the remaining produce becomes "unique," i.e. scarce. Scarcity commands a premium, which translates into profits.

Your comments are so strangely out of place, I fear we may actually be talking about two completely different things and ASSUMING we are both speaking in the same realm. If this is indeed the case, I apologize.

All the best!
Dave
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