Thursday, December 1, 2011

flushing the surplus by relative price reduction...its not the best way its the only way

the limitless back and forth  struggle
over shares of a certain  surplus stream
 can't happen

 if ..the surplus evaporates  quickly enough
that is to say
evaporates too quickly at least potentially
to sieze and build the proper cistern and  syphon system
to pump it off line
hence the imperative
don't cut your price to  your cost
just to grow your market  share

once you generalize this imperative

downward sticky pricing
becomes a micro reality
even where marginal  firm costs are falling