[Jedster]

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I'm pissed at MSFT for setting reverse price controls by pricing their xbox360 too low for the limited supply, thereby increasing demand and making it impossible for me to get one at a store with a return policy.

actually, if you think about it, they are manipulating demand through pricing. i wonder if it's possible that other companies would do similar things.

i'm not arguing for price controls mind you. i'm just saying even free markets can be imperfect.

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What's the problem? They have the xbox, they set the conditions under which they'll sell it (or the conditions under which they want their resellers to sell it under in order for them to distribute it to the reseller).

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My point is simply that MSFT is manipulating markets to its benefit. Note that their ability to mandate price controls among retailers is one of the things that is creating this whacky secondary market. Also, if you look at past MSFT practices, you'll see some practices which got in the way of a well-functioning free market.

Another way of putting it: it is fair to be skeptical of corporate power AND to be skeptical of government power. It's not like you have to choose one over the other, for now and eternity.

In the particular XBOX case, I am not really pissed, other than that I really would have liked to play the new Madden 2006 yesterday at my house instead of at Best Buy. But the case illustrates a relatively harmless example of how companies manipulate markets.