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I get steamed when axioms of competitive markets are violated. I'm steamed now. I can't even dull my pain by listening to Jim Courier (who I think is the only tennis commentator who is as good as John McEnroe) because at the moment the ladies are playing and Courier only commentates on proper tennis.
How can you say that!!??!!
Why am I steamed again? Oh yes...
There's an axiom in economics, that the price of a product (the marginal revenue to the firm) in a competitive market will be equal to the marginal cost of production of the good (at least, that holds in equilibrium).
The marginal cost of production includes a payment to capital - equal to a "normal" rate of return.
In an enviornment where there are large "fixed" costs associated with production of the good, such that production takes place on a downward-sloping segment of the supply function, a two part tariff may be utilised in order for average revenue to equal average cost (remember, average cost includes a "sensible" payment to capital).
Riddle me this...
What do you think the cost of production of an additional "transmission" of Nasdaq Short Interest data might be? (That is, how much would it cost to include one more user on a list of people who get the data).
Ten bucks a month (five minutes to add the user, and pennies in bandwidth, with about five bucks for payments to capital), tops - that would be my guess.
Try FOUR GRAND.
Proper "greenspan-backs", too - not that Aussie 77c-in-the-real-dollar rubbish.
Four grand for data? With no backfill? You have got to be kidding me.
The real kick in the teeth is (get this)... they used to provide it for free.
Seems that the NASD sussed the fact that Short Interest spikes are a very good indicator, giving "those with ears to hear" a clue as to when NASD member firms were about to turn up the wick.
The NYSE still provides their short interest data gratis, as does the AMEX. (If you know where to look). Both are stillonly monthly ,which is lamentable (the ASX can do it weekly - why not the NYSE, NASD and AMEX?)
From now on I'll just use the AMEX data on short interest in QQQQ (why did they rename it from QQQ?) as a proxy for Nasdaq short interest; I would rather stick bamboo skewers through my scrotum than give penny one to those shills at NASD.
If I had a hundred grand a WEEK to spend on data I would still find a pirate source for that particular data, just so as not to give anything to those mountebanks and blackguards. I have sources whereby I can still generate it (stock by stock... ), but it's a laborious pain in the @$$ of a job. But I'm going to do it now - and offer it as a product (for $3999... just kidding).
One last word about tennis... they have got to do something about the women screeching like galahs. It is getting ludicrous (and I speak as one who thought it was ludicrous when Seles started it). Steffi never needed to screech.
