Some products are difficult to assess, in terms of value for money. The problem occurs in the computer industry, where nominal "price" does not actually capture qualitative changes in the product. A standard PC sold in 2012 is much more capable than a PC sold in 1995, for example, whatever the nominal price.
Something of that problem is reflected in the prices consumers pay for cable TV service, to the extent that the channel line-ups are not equivalent between 1995 and 2012, for example. Cable operators argue that the dramatically higher number of channels in expanded basic accounts for the price hikes.
The argument is not without merit. But it arguably is a more subjective matter whether most consumers find the product qualitatively "better," in relationship to the quantitative increases in price.
Wednesday, August 15, 2012
Cable Prices Grow 70% Faster Than CPI, 1995 to 2011

Subscribe to:
Post Comments (Atom)
Much of the AI Chip Market Shifting to Inference
The artificial intelligence market changes fast, and not only because new models have been popping up. It seems we already are moving toward...

-
We have all repeatedly seen comparisons of equity value of hyperscale app providers compared to the value of connectivity providers, which s...
-
It really is surprising how often a Pareto distribution--the “80/20 rule--appears in business life, or in life, generally. Basically, the...
-
One recurring issue with forecasts of multi-access edge computing is that it is easier to make predictions about cost than revenue and infra...
1 comment:
Gary what is the source for the table?
Post a Comment