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Comment: Re:Why isn't the U.S. doing things like this? (Score 1) 156

by jbmartin6 (#47490247) Attached to: Japan To Offer $20,000 Subsidy For Fuel-Cell Cars
Or if you like, Coke v. Pepsi is not a good analogy because those products are substitutes for each other. A hydrogen fuel cell car is not a substitute for a gas car, people will not simply switch from one to the other due to price concerns. There are a lot of other factors, such as availability of fueling stations, proximity to qualified service providers, and so on. So the people who will buy the fuel cell car are going to buy one regardless. all this handout will do is add the $20k to the price for the manufacturer to profit. Now if the supporting infrastructure for both types of cars were identical, the analogy might be more apt. But in that case there would be no supposed need for the handout would there? Perhaps the money might be better spent building out fuel stations instead of just effectively handing it out to a politically favored car manufacturer.

Comment: Re:Why isn't the U.S. doing things like this? (Score 1) 156

by jbmartin6 (#47490223) Attached to: Japan To Offer $20,000 Subsidy For Fuel-Cell Cars
An excellent point. But what do you think the business will do when someone else is handing out money to buy their new product? At the very least, any incentive they have to control costs or reduce prices just went out the window. The Coke analogy isn't quite right since that price is long established by market competition, and coupons are typically backed by the manufacturer or the reseller, i.e. someone in the sales chain, as opposed to some third party whose only involvement is handing out money. In other words, the coupon is in business terms indistinguishable from a price cut. Whereas the $20k handout is simply more profit to be made from customers who would have bought it for $50k but can now 'afford' to pay $70k

Good salesmen and good repairmen will never go hungry. -- R.E. Schenk

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