frederick_muller

Is there anyone out there who has given some thought to the current

film vs digital debate in the framework of classical micro-economics?

It seems to me that with the surge in digital, the demand curve for

film is simply shifting to the left along a fixed (in the short-term)

supply curve. Hence prices are falling to a new short-term

equilibrium point. I can see that right now ... in London, the cost

of Fuji Superia 400 has dropped almost 50%. This does not necessarily

mean "the death of film" and our expensive Leica M's, just an

adjustment to a new equilibrium in the market.

The missing piece I want to devote more thought to ... and stimulate

discussion regarding ... is the industrial micro-economics of a Fuji,

Kodak, Agfa or Ilford. Where is this equilibrium going to lie, and

will it be at a point where the relationship between fixed and

variable costs and revenues of a Kodak or Fuji permit them to continue

operation? In the end the solution may be for the supply curve to

shift to the left as well, forcing prices higher to keep the lines

running. Has anyone done this study or seen such a study? I imagine

anyone analyzing Leica (ex-Digital M), Hermes, Fuji, or Kodak stock

should be interested.