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Using Steve's entertainment argument framework, consider the case of audio recordings. Stereo Lps sold for more than mono Lps -- value added of the second audio track (well, ok, L+R, and L-R.) When cassettes and 8-trancks came along they were also priced higher than Lps. When CDs came along they were almost twice the price of Lps with the added value that they never wear out or skip. (Melting, scratching, and warping were never mentioned.) We were told that the price would come down in the future as more CD plants came on line. We are still waiting for the price drop.
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