Adam Smith & Inequality: Inequality Generated Outside the Market

Michael Kades: "Kodak invented the Digital Camera in 1974. You know who did not want to develop it and bring to market for fear it would canabalize their film monopoly? Yup, Kodak. My guess is Kodak made the right choice to maximize its profits. That is why competition is important for innovation.... Actually Kodak did anticipate it. They just realized they were better off sucking every last dollar out the film monopoly and delaying the digital revolution as long as possible. Also, I would not call a near century of dominance ephemeral.... Isn't the question whether Kodak's decision to milk its existing monopoly was more profitable than pursuing a digital camera. I tend to think Kodak knew what it was doing. Even a couple of years up front of large monopoly rents >> a long tail of competitive profits...

#noted #2019-11-26