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Message: [QUOTE="nzm136, post: 2842032, member: 2531"] 1. Nobody is forced to pay for something that they don’t want. If you think otherwise, I don’t think that you understand the underlying economics of the transaction. Sure, people might have to pay more for the channels that they do want due to a change in an asset’s price elasticity in a given geography, but that situation absolutely fits into my example. Please give me a fact pattern if you feel otherwise, and I’ll either explain how it fits my model, or I’ll change my position. 2. People who aren’t willing to pay for cable at all aren’t relevant to cable pricing discussions. Admittedly, I think that I’m taking what you wrote out of context on this point, so it’s more directed at the general audience than you specifically. 3. It’s my hypothetical. I didn’t leave anyone out. Come up with your own hypothetical and you can include anyone that you want (see the end of pt 1) 4. I’m not sure what the relevance to your comment about cord cutting is to my position, but I’d definitely agree the cable prices are insane, which is causing people to leave. I cannot say whether or not that pricing strategy is a good move. I can, however, say that a company can maximize short term profitability why increasing prices if they sell inelastic goods (enough revenue is generated by the sticking customers who are paying more to offset the ones that are leaving), but I have no idea if that’s the case or not. I also don’t know how to accurately determine the net present value of customer lifetime value in the cable industry, and I’m guessing that they don’t either. Still, I’m confident that it’s some number greater than $0, which would mean that making decisions solely to maximize short term profitability is probably a bad idea. (I think that we agree.) 5. I’m not sure how to respond to your macro point at the end, but bundling is a fairly engenious pricing mechanism that is absolutely not becoming obsolete. Depending on how theoretical you want to get, its used in some form or other in virtually every industry. McDonald’s meals (burger + fries + coke) are a great example. Additionally, while liberal democracies can be painfully inefficient during normalcy and exceedingly impersonal at times, the combination of a democratic government and a capitalist economy is an exceptionally powerful motivating force that responds to emergencies with an unmatched efficacy. [/QUOTE]

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