I believe that the intuitive economic model you have in mind does not work.
1) In the moment when you sell a thing, its development costs are sunk. That is, you have to explain the price via market conditions at the moment when things are offered at the market. You can argue that development is a fixed cost, therefore less firms will enter the market, therefore the price is higher. But this is independent of the development costs for future processors.
2) Basically, see 1) …?
3) If I don’t expect that my computer becomes obsolete in two years, I am willing to pay more. Thus, the demand curve moves upwards. So the price of the processor may be higher. (But this also depends on supply, i.e., points 1) and 2))
4) Ok, but this is independent of whether Moore’s law does or does not hold. That is, if you have some processor type X1, at some point its patent expires and people can offer it cheaply (because they don’t have to cover the costs discussed in point 1).
I believe that the intuitive economic model you have in mind does not work.
1) In the moment when you sell a thing, its development costs are sunk. That is, you have to explain the price via market conditions at the moment when things are offered at the market. You can argue that development is a fixed cost, therefore less firms will enter the market, therefore the price is higher. But this is independent of the development costs for future processors.
2) Basically, see 1) …?
3) If I don’t expect that my computer becomes obsolete in two years, I am willing to pay more. Thus, the demand curve moves upwards. So the price of the processor may be higher. (But this also depends on supply, i.e., points 1) and 2))
4) Ok, but this is independent of whether Moore’s law does or does not hold. That is, if you have some processor type X1, at some point its patent expires and people can offer it cheaply (because they don’t have to cover the costs discussed in point 1).