Reply to thread

Message: <blockquote data-quote="Griffonsec" data-source="post: 2765887" data-attributes="member: 37817">This is somewhat falacious.  IT's a common misconception that most companies drive their prices higher and higher to see what they can get for them.  In fact, in nearly every industry where there are at least three major players in a given area all products tend to revert to a minimum profit margin.In the US nearly every large company seeltes for a 12% profit margin on net yearly income.  It's simple economics.  Well, if any economics can be called simple.That's the way it's been done for years, and that's how most companies stay in it for the long-hual.  It's the companies that do press the limits that often end up failing spectacularly.  It's what economists call a "bubble," and the thing about bubbles is that eventually they pop.  That's what happened to the dotcoms and what is currently beginning to happen to the housing market.  Prices inflate beyond their value, the major players start wanting a piece of the pie, so the prices rise across the board, until eventually the whole industry blows up.It's a nasty cycle, and the direct correlation to the d20 industry can be easily made and is very telling.</blockquote>