On Thursday 27 January 2005 8:26 pm, Stuart Brorson wrote: > The basic problem with software is explained by Capitalist Economics > 101: Software's marginal cost of reproduction is basically nil, so > in a ideally competitive market its price will tend over time to > zero. Ways to get around this iron law of economics are: > > * Disrupt perfect competition, e.g. somehow become a monopoly, or > prevent customers from having a real choice in the market place. > * Keep the market in flux via research and/or constant introduction > of new features/products, so that prices can never asymptote all > the way to zero. > * Don't sell software. Give it away as a loss-leader for some other > product which doesn't have zero cost of reproduction. > You can see all three methods at play in the real world all the time. > > Stuart There is always IBM's favorite: Tie the software to the hardware so you can't use the hardware without the software and visa-versa. Regards Marvin
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