While increasing dealer revenue is a plausible goal, it also seems plausible that reducing production cost could cause awkward maintenance. It is even plausible that only the bill of materials would be considered, though the feedback loop for increasing assembly cost is much tighter and less noisy that the loop of end-user dissatisfaction with maintenance issues.
Even within an organization, creating externalities from one department's perspective seems common enough.
Even if a decision maker is aware of the possibility of externalities and cares about a broader constituency (temporal or "spatial"), evaluating actual costs is an expense as is justifying that investigation expense and any mitigation/avoidance expenses to others in the decision web.
Comments
While increasing dealer revenue is a plausible goal, it also seems plausible that reducing production cost could cause awkward maintenance. It is even plausible that only the bill of materials would be considered, though the feedback loop for increasing assembly cost is much tighter and less noisy that the loop of end-user dissatisfaction with maintenance issues.
Even within an organization, creating externalities from one department's perspective seems common enough.
Even if a decision maker is aware of the possibility of externalities and cares about a broader constituency (temporal or "spatial"), evaluating actual costs is an expense as is justifying that investigation expense and any mitigation/avoidance expenses to others in the decision web.