Some firms incur costs to offer a lower quality: i) Intel dismantled the mathematical coprocessor in some
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Some firms incur costs to offer a lower quality: i) Intel dismantled the mathematical coprocessor in some versions of the 486 CPU, ii) IBM has developed software to make some of their printers slower, and iii) Sony deliberately limited the capacity of some MiniDiscs to 74 instead of 80 minutes. Why do you think that the firms do this? What do you think that the welfare consequences are?
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It is possible that the firms you mentioned made these choices in order to segment the mar...View the full answer
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Related Book For 
Industrial Organization Markets and Strategies
ISBN: 978-1107069978
2nd edition
Authors: Paul Belleflamme, Martin Peitz
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