[conspire] Corrolary to one of Moen's Laws?

[Ross Bernheim]

On Mar 14, 2005, at 12:34 PM, Don Marti wrote:

> The problem is that the more dumb customers you
> have, the more money you can make by _cutting_
> investment in the product.  The less discriminating
> your customers are, on average, the more rational it
> is for you to rip them off.  If you think quarter to
> quarter, you might even say it's your duty to your
> shareholders to ship the crummiest product you can
> to get maximum short-term profit.  Letting FUD trim
> off the dumb customers for you limits your options,
> product-quality-wise.

It may maximize short term profit which should
theoretically be either be distributed to the stockholders
or result in higher stock prices. The effects longer term
are not in the best interests of the stockholders. usually
the ones who benefit are the top management who take
large salaries and bonuses for the short term performance
at the expense of the company and stockholders in the longer
term.


Ross