= 27d567bc2d48d9f40e9ccc20ea370b15)
listic comments on What Is Signaling, Really? - LessWrong
You are viewing a comment permalink. View the original post to see all comments and the full post content.
= 783df68a0f980790206b9ea87794c5b6)
Loading…= b715d02e85f7b3b4ae65ca3d3e450868)
Subscribe to RSS Feed
Powered by Reddit
= f037147d6e6c911a85753b9abdedda8d)
You are viewing a comment permalink. View the original post to see all comments and the full post content.
Comments (169)
I assume the existing cigarette manufacturers demand large profit margins for their products.
Why can't new cigarette manufacturers enter the market with cheap product and gain some brand loyalty just by being there? (they won't have to spend on costly advertising for that, since it is prohibited by law) Then they can raise prices or introduce premium versions of their product.
Because they can't utilize economies of scale or amortize their fixed costs across as large a production run as the large established companies can. Unless the established companies are priced very far above their minimum marginal cost, the small company would be running at a significant loss to undercut them.