Ep. 826: A 2019 Christmas Deep Dive with Michael Covel on Trend Following Radio
Michael Covel's Trend Following
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The Pavlovian Bell
Two engineering style companies can't resolve some ambiguity without spending tens of millions of dollars in Texas Superior Court. Nobody wants to bring the bad news to the executives up the line that here's a few hundred million dollars you don't have and it's much safer to act like the Persian messenger goes away to hide rather than bring home the battle lost. In many cases when you raise the price of the alternative product it'll get a larger market share than it would when you make it lower than your competitor's product because the bell is a Pavlovian bell.
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