Formerly About Applied Materials Message Board

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Politics : Formerly About Applied Materials

AMAT 327.38

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11:11 AM EST

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To: D.J.Smyth who wrote (13599)	12/18/1997 8:20:00 PM
From: Clarksterh	of 70976

Darrell - <<if you have to "fix" the price of dram through an agreement of understanding to where companies can make money producing it, where's the wrong?>> OK - then how do you decide who gets to sell how many. After all, if the price is fixed artificially high, then they aren't going to sell as many, so their will be vacant plants. Whose? Should it be in proportion? Why should Micron suffer, when it was the Koreans who stuffed the channel by spending without thought? OR - If you fix the price, what is the incentive to make it newer, better, faster. This is the primary problem with communism. There is no incentive. Or, for another example of how stagnating price fixing is, look at the innovation that has occurred in telephony since AT&T lost their price regulated monopoly. And AT&T has actually grown much faster than it probably otherwise would have. Price fixing is never a solution except possibly for finite commodities which don't spoil (diamonds, and oil are the two best examples). Clark

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