The Economics of Online Poker

gergery · #1 10-10-2005, 09:04 PM

threeonefour · #2 10-10-2005, 10:43 PM

i have a few issues with what this guy says but its a very interesting article.

i don't really see how this is going to turn out to be such a great move for party. i really think if they wanted to recoup the rake from multitablers fleeing the site to get rakeback they should have tried to buyout the skins one by one. that way, they don't lose customers that they initially brought to their site only to have them leave to get rakeback.

i think at this early stage in market development its more important to sieze as big of a share of the market as possible so that you can ultimately have some market power. which would then result in economic profits.

FishHooks · #3 10-10-2005, 10:49 PM

[ QUOTE ]

i think at this early stage in market development its more important to sieze as big of a share of the market as possible so that you can ultimately have some market power. which would then result in economic profits.

[/ QUOTE ]

You dont think that party poker who now has over 8times as many players as all the skins combined since they did this doesn't allready have the "power"?

kenberman · #4 10-10-2005, 11:01 PM

[ QUOTE ]
they should have tried to buyout the skins one by one.

[/ QUOTE ]

that would have cost them a lot of money. this recent move probably cost them $0.

[ QUOTE ]
that way, they don't lose customers that they initially brought to their site only to have them leave to get rakeback.

[/ QUOTE ]

everybody keeps saying "they are losing players" despite all evidence to the contrary - look at the player counts.

[ QUOTE ]
i think at this early stage in market development its more important to sieze as big of a share of the market as possible so that you can ultimately have some market power. which would then result in economic profits.

[/ QUOTE ]

huh? this is exactly what Party has done.