Simultaneous+Consumption





Please scroll to the right becuase there is another picture and text on that side, but I can't figure out how to move it.

Simultaneous consumption happens when the consumption of a product does not downgrade the product in other consumers eyes. This happens quite often, actually. A light bulb can provide one person light or it can provide 30 people light, however the value of the the light to one person does not change no matter how many people it is providing light to. Microsoft is another example. It only has to produce Windows once, however can sell it to as many people as it wants without changing the value to each individual customer. The same is true of webpages. Occasionally, simultaneous consumption even increases the value of a product to a person. An example is the internet. When more people are using the internet and e-mail, there are more webpages and more people you can communicate with, via the internet, so the more people who use the internet the greater the benefit is to all users. The same is true of youtube. The more users youtube has on its sight the more videos that will get posted and watched. With an increase in videos posted and watched, each user of youtube has a greater variety of videos to watch and is happier because of it. Also, youtube will generate more ad revenue and companies who advertise with youtube will be better able to spread their message to consumers. So by banning youtube from our students at school, our school has not only taken happiness from our teachers and students. It has also taken happiness from every user of youtube due to network effects and taken visitors away from youtube, which will decrease the amount of money advertisers would like to spend on youtube ad spaces, which steals profits from the company that runs youtube(google?) and also steals some of the benefits of adspace on youtube.

http://en.wikipedia.org/wiki/Rivalrous -look for non-rivalrous goods

http://www.amosweb.com/cgi-bin/awb_nav.pl?s=wpd&c=dsp&k=consumption+rivalry -again scroll down to non rivals

http://books.google.com/books?id=Gz-5QCLlLaEC&pg=PA449&lpg=PA449&dq=simultaneous+consumption+economics&source=web&ots=CQ1hpS7_FQ&sig=4eXo4kelsKKRUWZX7I2sm5d0RFg&hl=en&sa=X&oi=book_result&resnum=7&ct=result

Trivia:

What cannot be simultaneously consumed? a) Youtube B) Light Bulbs C) Cupcakes, cakes and other baked goods D) Windows(the operating system)

What is not a negative effect of the school banning youtube? A) Annoys teachers B) Annoys Students C) Destroys part of the network effect D) Steals ad revenue from youtube F) Has an amazingly stupid parking policy

Answer 1. C 2. F