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The Power of Information | Cypress Semiconductor

The Power of Information

One rule of economics is that if the exchange of information is free, the optimal solution will be found.  (The classic example is of a farmer renting a neighbors field so the neighbor cannot raise cows and eat his corn.  The rent is cheaper than the cost of building a fence and he raises more corn.)

If one side has most of the access to liability data then that party should be held in strict liability.   (An example is Coke bottles.  Coke knows statically how many bottles blow up when touched as a function of manufacturing cost and.  They can come up with the optimal solution for all, only if they include the cost of being made whole in their manufacturing cost.)

 

I find that companies can make information hard to get so to have you choose less than optima solution for you and beneficial to them.

 

I have been looking at a product that has two models and two power levels.  The performance data for the different models was given in different formats making the comparison.  Here are the choices and relative price:

3HP Higher End        100%

2HP Higher End          90%

3HP Lower End          80%

2HP Lower End          70%

The performance data for the different models was given in different formats making the comparison very difficult.  With the help of people much smarter than me, I was able to determine relative performance.

3HP Higher End        100%

3HP Lower End          79%

2HP Higher End          67%

2HP Lower End          66%

 

The Performance to Price ratio is:

3HP Higher End        100%

2HP Lower End         100%

3HP Lower End          99%

2HP Higher End          74%

 

This new data tell a different story.  A user may think by buying to lower cost profession model that they are getting a good deal.  In actually they are getting the worst of deal of all of them and it is tied as the lowest performer.  No wonder they made the data hard to read.

 

In the long run, if you don t provide the customer to best option, at the right price, for them, then some other company will and you lose that customer for life.

Comments

jolkos_2863591's picture

This new data tell a different story.  A user (using foam pillow)may think by buying to lower cost profession model that they are getting a good deal.  In actually they are getting the worst of deal of all of them and it is tied as the lowest performer. Foam pillow review. No wonder they made the data hard to read.

 

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