Economics @ ITT

California car dealers go crying to DMV about Tesla Motors’ website

Posted in economics, Regulation by ittecon on September 26, 2013

Auto dealers have been dealing with disruption just about as well as any other legacy industry has. Instead of attempting to compete, dealers have chosen to respond to Tesla’s refusal to cut them in on the middleman action by throwing up as many regulatory roadblocks as possible. Sadly, this antagonistic attitude toward both their competition and the car-buying public somehow makes sense to them, and they seem very willing to bury both the upstart and their last remaining shreds of goodwill at the same time.

California car dealers go crying to DMV about Tesla Motors’ website | The Raw Story.

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Is the Porn Industry Perfectly Competitive?

Posted in economics by ittecon on May 30, 2013

Sex sells, but can it remain profitable.

It’s harder to make profits in porn in the digital world, the 21st-century medium of porn distribution.

Evidently, economic profits are approaching zero. There is clearly differentiation, but by and large pornography is a commoditised industry, but the marginal cost of delivery is also approaching zero.

This industry might well benefit be reading Chris Anderson’s Free: The Future of a Radical Price (or UK), and embrace it. Leverage the medium as an advertising vehicle, and run with it.

[No gratuitous images or video links.]

Source: Is Success Killing the Porn Industry? | Alternet.

Sir Richard Branson talks about Virgin, Innovation, and Disruption

Posted in economics, oligopoly by ittecon on May 20, 2013

How to differentiate in an oligopoly market.