alt Hacker NewsThis feels like a religious belief. Somehow everyone captures exactly the value they create - no more, and no less. Amazing how perfect every transaction must be to ensure this is always true.
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Actually, in most economic models of markets, the producer does not capture 100% of the value it creates. The exception would be a pure monopoly where I can do pure price discrimination and charge everybody exactly as much as they would pay. That is pretty rare for obvious reasons. So I don't know why GP expects this to be true of ARM.
"Capturing the value you create" is a euphemistic way to describe pushing producer surplus towards 100% and consumer surplus to 0%, your ability to pull it off depends on your monopoly power, and it would be more honestly described as "value extraction" than as "capturing".
I think in this case semantics matter.
They must also believe that stock prices represent actual value. I guess they use a very limited definition of the word "value".