The Wire: What Are The Options?
Economics → Macroeconomics → Inferior Good
Stringer discusses with Mr. Lucas a company's options when it is operating in a competitive market and has an inferior product. Mr. Lucas suggests acquiring competitors or dropping the price to gain market share. He warns Stringer that the latter tactic will lead to lower product credibility and mentions the example of Worldcom.
Public Discussion Questions
What other options does a company have if it is in the situation described by Stringer?
Does a product lose consumer credibility as its price drops? Why or why not?