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> Sounds like an opportunity then for you to create a competing company that functions the way you feel it should function

Sure, if one has millions and millions in capital. Because why would an investor put a money in my company that works the way it “should” according to me if it produces lower profits as compared to my competitors?

by lotsofpulp2 hours ago|

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Because buyers choose to spend less money, so if a business comes around that can offer the same product/service at a lower price, the investor will want to own a piece of that business rather than the one that is about to lose buyers.

by saghm2 hours ago|

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Right, because we never see investors making decisions that are suboptimal in the long term because they're too focused on short-term gains. Everyone is perfectly rational, and high initial costs have never discouraged anyone from trying to displace an established dominant player; it's purely because the dominant players are perfectly efficient and don't ever try to rent-seek.

by lotsofpulp1 hours ago|

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I did not claim any of that, so not sure if your reply is misplaced.

It’s an easily observable fact that throughout the previous decades, investors have invested in businesses that reduce profit margins. Amazon being one of the most famous with the slogan “your margin is my opportunity”, but also Walmart, Costco, and other businesses that end up winning because they delivered acceptable products or services at lower prices.

by saghm1 hours ago|

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No, my reply was not replaced. You were replaying to a thread where someone was told that they should start a competing business to Microsoft to displace the Xbox, and when the obvious response of how much money was needed to start such a business, you replied with a hand-waved explanation of how investors would be interested if it would eventually lead to a return on investment. You said something that was not technically incorrect in a vacuum but completely ignored the context behind what the person was actually asking, so I was pointing out why your response wasn't particularly relevant or helpful.

I understand that you weren't the one who initially claimed they should start a business, but if you're going to jump into a thread where someone is told something nonsensical and defend the nonsense by ignoring the context, it's reasonable for others to also jump in and call that out.

by inigyou2 hours ago|

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There are reasons people don't start businesses. Besides all the regulations, there's the constant struggle to pay rent.

by ozgrakkurt2 hours ago|

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You have to be delusional if you think you are in that class that can spin up an xbox competitor

by EA-31672 hours ago|

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What people value is subject to marketing and long-term manipulation, not to mention a poverty of competition.