Richard Doolittle
Well-known member
For several reasons, I don't engage in longwinded debates on here. But there is a point of contention, that I would like you to explain and I quote you from the 6 page dialogue about shutting down the archives:
econ101 "What about generic crackers vs. branded Ritz crackers? When Ritz gets on TV and advertises how good their product is, does the fact that there are branded products out there help or hurt the cracker industry as far as more of the economic pie in terms of money? The answer, of course, is that product differentiation plays to the different motives of the buyers. When you separate the different motives, you are able to garnish a higher price for for those motives. If someone thought that white cattle with black stripes was better for them than commodity beef, were willing to pay more for it, and a producer could produce for that market, would it increase or decrease the dollar value brought into the overall cattle industry?
Market differentiation is what will increase the value to the industry. Commodity beef will not. It allows consumer preferences to be segregated and sold to. It increases the amount of money in the industry."
If I'm not mistaken, you are for mandatory COOL. Isn't your example here a little contradictory then? You quote above seems to make me think you believe in market forces driving what is produced for the market. Doesn't mandatory COOL make all US beef "commodity US beef" and thus make it more difficult for those who seek out the markets that are willing to pay the higher prices for it?
econ101 "What about generic crackers vs. branded Ritz crackers? When Ritz gets on TV and advertises how good their product is, does the fact that there are branded products out there help or hurt the cracker industry as far as more of the economic pie in terms of money? The answer, of course, is that product differentiation plays to the different motives of the buyers. When you separate the different motives, you are able to garnish a higher price for for those motives. If someone thought that white cattle with black stripes was better for them than commodity beef, were willing to pay more for it, and a producer could produce for that market, would it increase or decrease the dollar value brought into the overall cattle industry?
Market differentiation is what will increase the value to the industry. Commodity beef will not. It allows consumer preferences to be segregated and sold to. It increases the amount of money in the industry."
If I'm not mistaken, you are for mandatory COOL. Isn't your example here a little contradictory then? You quote above seems to make me think you believe in market forces driving what is produced for the market. Doesn't mandatory COOL make all US beef "commodity US beef" and thus make it more difficult for those who seek out the markets that are willing to pay the higher prices for it?