[saratogadew]

Originally Posted by jms62

http://www.latimes.com/business/hilt...03-column.html

It is a ****ing exchange they set the price they are willing to take the business for. It is like you buying a stock and watching it tank and blaming the exchange.

This is the way I understand it. Let's look at another business model and use the same dynamics. Let's call it the "Newspaper Exchange". We agree that everyone should be entitled to read the news and learn about the world. People in Brooklyn can't afford the newspaper. But still, the newspaper will be delivered to them free of charge. But in order to make up for this loss, the Manhattanites will be charged 5.00 a day for the paper. Some Manhattanites balk at paying 5.00 a paper and 20 percent cancel. Now the following year the remaining 80 percent must be charged 6.25 for the paper to make up for the Brooklyn freebies. Now 20 percent more cancel the paper and the downward spiral continues. Even though it is an "Exchange" and the Newspaper company can charge what they want, they know the ceiling that exists.