Talk:Strategy for Information Markets/Cost Structure

Economies of scope
For information goods, the economies of scope are likely to take the specific form of reduced "first-copy costs". TDang (talk) 05:49, 15 October 2010 (UTC)

learning economies reference
Ford on Edison pricing the light bulb: Edison as I Know Him, see page 23 TDang (discuss • contribs) 21:14, 18 October 2011 (UTC)

Audit of article
Cleaned it up a tad with some copy-editing. Added this to the sunk costs section, as it seemed pretty foundational: "Prior to incurring sunk costs, a firm should determine if it will be able to recover sunk costs after entry into the market. Once sunk costs are already incurred, a firm should no longer consider the sunk costs in its decision-making, and should instead focus on maximizing net income or minimizing losses." Just drawing attention to it in case this is beyond the scope of the subject for our wiki purposes. Cosmopolite (discuss • contribs) 12:01, 25 April 2012 (UTC)

TDang review April 2012
I'm reviewing this version. I'll likely be more critical than complimentary, because (a) that's the way I am and (b) that's what will help improve things. Please don't take the criticism-over-compliments to mean I have a wholly negative view.

Make sure to check the all-purpose review thoughts as well.

TDang (discuss • contribs) 22:15, 29 April 2012 (UTC)
 * Introduction is OK, probably could be rephrased a bit (not positive how, since I think a lot of those words were mine to begin with).
 * "Sunk costs are unavoidable and cannot be recovered, meaning they are are necessary to accomplish a goal and from a pricing stand point the cost cannot be reversed. A sunk cost is a retrospective cost because it cannot be recovered."--This is confusing. It's possible those sentences could be pulled out, but probably better if they were reconsidered and rephrased.
 * "should determine if it will be able to recover sunk costs after entry into the market"--The word "recover" is the wrong one here, although natural. We've already established that sunk costs are unrecoverable, so we shouldn't talk about them being recovered. Perhaps instead write something like, "...if profits after entering the market will be enough to make the sunk cost worthwhile..."?
 * "on maximizing net income or minimizing losses."--Let's just say "on maximizing profits"
 * "utilities are all perfect examples of a firm's fixed costs"--"perfect" isn't needed there.
 * "Marginal cost is also the breakeven point which is the point where total cost is equal to total revenue of a firm or company."--This is wrong.
 * Total Cost--This should possibly be moved up to before the other costs. It doesn't need a lot of emphasis, since it isn't used directly in analysis, but it should be part of the page.
 * "lower per-unit average cost"--"per-unit" not needed, since that's handled by "average"
 * The graphs are great.
 * Economies of Scope--It would help to have examples relevant to information/network goods.
 * Learning economies--Learning economies are interesting, but harder to apply to information/network goods than more traditional products. An example would be good, though.
 * References
 * This page needs more/better references.