I have a bit of a hard time accepting the zero profit assertion, but a lot of
true things are often hard to accept, so I won't argue against it without data.
However, even if you grant that in the long term profits will trend to zero,
that doesn't mean that you can't have a decade where you make billions.
-----Original Message-----
From: arocket-bounce@xxxxxxxxxxxxx [mailto:arocket-bounce@xxxxxxxxxxxxx] On
Behalf Of Bill Claybaugh
Sent: Thursday, September 17, 2015 8:54 AM
To: arocket@xxxxxxxxxxxxx
Subject: [AR] Re: Rocket Labs
Sent from my Commodore 64
On Sep 17, 2015, at 12:16 AM, David Weinshenker <daze39@xxxxxxxxxxxxx> wrote:
Bill Claybaugh wrote:
Why assume evil when nature is a sufficient explanation?
Airlines are both commodity businesses--they have no pricing
power--and service businesses--they have inherently high costs--so
they naturally, through competition, fall to no profit pricing. Space
transportation is no different.
So what you're saying is that transportation (space, air, or
otherwise) - as a business - is a relatively pure example of the sort
of "flat and crowded" market in which "racing to the bottom" may be
expected as an emergent behavior?
-dave w
