Re:Cash Cow Disease: The Cognitive Decline of Microsoft and ...
by foobarbazoo on Friday December 17, 2010 @07:20PM
(#2018440)
In cases like that, the wealth effect would have to consider the entire value stream, not just an individual transaction.
If the company with products you describe, over many years, lost money consistently and it was not due to just "giving away" product at lower than the market would pay but was truly because the market would not pay the company's cost of production for the goods and services offered, then in that case, the company will have destroyed global wealth.
Happens all the time.
You might not be making a profit up front, but there can well be profit from convincing a customer into a particular revenue stream.