Originally Posted by
Xiaotung
Exit strategy anyone?
On second thought, yes... the value of switching APD upgrades to one up is twofold:
1) higher income for NZ if supply << demand and oneup nets average upgrade cost greater than old APD upgrade rates
2) information asymmetry. we don't know what average upgrade costs will be so they hope we'll overpay.
We can control (2), by publishing successful one-up bids. And information asymmetry must be the extra value NZ sees in oneup, because otherwise they'd simply increase the cost of APD upgrades.