Subject: Re: Development vs. aquisition costs
From: "Stephen J. Turnbull" <stephen@xemacs.org>
Date: Thu, 30 Dec 2004 18:27:08 +0900

>>>>> "Chip" == Chip Mefford <cmefford@avwashington.com> writes:

    Don Marti:

    >> Economics question: would sysadmin time put into administering
    >> licenses and license servers count as a transaction cost?

Bingo!  In some sense, all overhead that can be allocated to a
specific transaction is a transaction cost.  So you can also allocate
thumb-twiddling time spent while waiting for a CAL to free up (in the
max-no-of-connections scheme) as a transaction cost due to the license
(offhand; really, I should think more carefully about it).

    Chip> Sorry, I know this is a serious discussion,

No need to apologize; this is a bug in economics practice.  Economic
theory knows how to deal with it, but in practice we don't measure it,
so it mostly gets swept under the rug.

    Chip> For me personally, there is very little in life I hate more
    Chip> than have to figure out for myself how much rent I owe on
    Chip> stuff I've already had to pay for.  If it isn't considered a
    Chip> transaction cost, it should sure as heck be considered a
    Chip> life-style cost.

Again, my offhand opinion is that it should count as a transaction
cost.  But measuring it would be a bitch, much harder than the
"sysadmin overhead" variety.


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