Comment by caseyy
3 days ago
By the way, inferior goods are not necessarily poor-quality products, though there is a meaningful correlation, and I based my original comment on it. Still, a OnePlus Android phone is considered an inferior good; an iPhone (or a Samsung Galaxy Android phone) is considered superior. Both are of excellent quality and better than one another in key areas. It's more about how wealth, brand perception, and overall market sentiment affect their demand. OnePlus phones will be in more demand during recessions, and demand for iPhones and Samsung Galaxys will decrease.
No objection to your use/non-use of the Market for Lemons label. Just wanted to clarify a possible misconception.
P.S. Apologies for editing this comment late. I thought the original version wasn't very concise.
> A OnePlus Android phone is considered an inferior good; an iPhone (or a Samsung Galaxy Android phone) is considered superior. Both are of excellent quality
No, the inferior good is a device with 2GB RAM, a poor quality battery, easy to crack screen, a poor camera. poor RF design and thus less stable connectivity, and poor mechanical assembly. But it has its market segment because it costs like 15% of the cost of an iPhone. Some people just cannot afford the expensive high-quality goods at all. Some people, slightly better-off, sometimes don't see the point to "overpay" because they are used to the bottom-tier functionality and can't imagine how much higher quality may be materially beneficial in comparison.
In other words, many people have low expectations, and low resources to match. It is a large market to address once a product-market fit was demonstrated in the high-end segment.
I mean "inferior good" as a macroeconomics term: https://www.investopedia.com/terms/i/inferior-good.asp. And the point of my comment is to show that product quality alone doesn't determine whether it's an inferior good.
I see your point. But the choice between an iPhone and a Galaxy is mostly the ecosystem. And the choice between OnePlus and a Galaxy S is mostly about the quality of the camera. And the choice between a Galaxy and a Xioami is mostly about trusting a Chinese brand (not for its technical merits; they make excellent devices). The real quality / price differentiation, to my mind, lies farther down the scale.
That is, the choice between a $10 organic grass-fed milk and $8 organic grass-fed milk is literally a matter of taste, not the $2 price difference. The real price/quality choice is between the $10 fancy organic milk, $4.99 okay milk, and $2.49 bottom-shelf milk. They attract materially different customer segments.
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