Dear PENners: I am circulating the following exchange to enter it
 into the current running shoe controversy.    Cheers, <Tom Weisskopf>
  ------------------------
 
  Message: 32005750, 27 lines
  Posted: 5:08pm EST, Tue Mar 1/94, imported: 4:23pm EST, Tue Mar 1/94
  Subject: RE: Running further with those shoes
  To: Tom Weisskopf
  From: [EMAIL PROTECTED]
  Sender: [EMAIL PROTECTED]
 
  Dear New Balance Tom,
      Wouldn't post Keynesian theory hold that perhaps for large companies to
  survive in this globally competitive market, there is a need for
  these companies to maintain growth at some specified rate,  and in order to
  grow they need to generate internal funds to finance their expected
  investment or retained earning needs.
       Perhaps prices are set at higher rates because its an oligopolistic
  pricing strategy which allows firms to retain power (keeping other companies
  out).  Other strategies to change quantity, advertising, etc
  may not work because they would be countered by rival firms, so prices
  remain high.
       I don't know if I explained this too well, but I find this
  theory (by Eichner) to be very interesting and convincing.  Plus it provides
  a needed prescription for controlling inflation:  get "megacorporations" under
  some social control.  Indeed Clinton was able to do this by "jawboning"
  pharm. companies.  Prices immediately dropped 30 percent with no apparent
  consequences for research and development.  Kennedy did the same thing with
  steel prices. It essentially forces all companies to lower prices.
        So get Bill to lower prices of shoes for us running grad students.
  (Personally I prefer the low end Asics and have for 10 years.  Even though
  I'm sure they are made with cheap labor, I'm a rather loyal customer.  Each
  pair has probably weathered over 500 miles and they're cheaper.)  Does
  you know if all that "gel" stuff in the shoes actually works?  I've been
  thinking of getting a new pair. (New Balance didn't work for me).
                                                  In pen-l solidarity,
                                                        Heather Grob
 
 ________________________________________________________________
 
 Message: 32039240, Reply to: 32005750, 10 lines
 Posted: 9:33am EST, Wed Mar 2/94
 Subject: RE: Running further with those shoes
 To: [EMAIL PROTECTED]
 From: Tom Weisskopf
 
 Heather -- thanks for your comments.  The post-Keynesian theory does
 have a certain appeal, I agree; but to apply it in this case wouldn't
 we have to show that the need of firms for internal funds has risen
 sharply upward, so that now they need the much higher mark-ups over
 cost that they can realize by reducing labor costs substantially
 while holding the line on output prices?  What would have raised
 their need for internal funds so much?     In solidarity,  <Tom>

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