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Re: Hey Terekhov: Wallace lost. Who'd guess.... ;)


From: Alexander Terekhov
Subject: Re: Hey Terekhov: Wallace lost. Who'd guess.... ;)
Date: Mon, 27 Mar 2006 16:16:21 +0200

John Hasler wrote:
> 
> Merijn writes:
> > You have yet to show that setting a price at zero is predatory
> > pricing. Just selling below cost is not by definition predatory.
> 
> A copyright license has no marginal cost.

Oh dear, no objection. 

"The ratio of price to marginal cost is meaningless, since often 
 pricing intellectual property at marginal cost is nonremunerative 
 (because marginal cost is lower than average total cost, owing to 
 heavy fixed costs) and leads to bankruptcy."

                                 -- Judge Posner, Seventh Circuit 

regards,
alexander.


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