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I'm not exactly sure what you're saying. Regulatory capture and efficient markets can't coexist. (My impression of regulatory capture on this matter comes from
by cb18 11y ago
I'm not exactly sure what you're saying.
Regulatory capture and efficient markets can't coexist.
(My impression of regulatory capture on this matter comes from the OP, it's the first I've really heard of this safety issue.)
I already explained in my above post that it is society at large that is currently paying for this with death and destruction on the highways.
And that's why this is such a barbaric position.
Say that the needed measures are put in place and this problem is alleviated. And during the implementation of the needed measures, costs get passed along the line and a few extra cents are tacked on to consumer products.
Well, significantly reduced highway deaths and people paying a little extra for whatever is obviously the preferred situation.
But then what will likely happen is that somewhere in the cost chain someone will improve/innovate something that lowers the cost of some particular element in the cost chain, then what the market will bear will adjust and we'll be back to the same or lower consumer product prices plus reduced highway deaths. What's blocking this process from happening is, according to this article, the short-term thinking and profits over lives stance of the trucking companies.
- Retric 11y agoSuppose the industry margin averages out to 3%. Suppose 1/3 of shipping cost is fuel and suddenly that increases by 100%. That's a 33% increase in cost. And with 3% margins no shipping company can eat that. So, the industry raises prices by 33%. OMFG that's got to have a huge impact right? Now step back, If a 3 percent of a TV's cost is shipping that increases 33% to 4% then the TV now costs ~1% extra which has minimal impact on demand. So, people are shipping about as many TV's. Net result increases in costs only impact customers when shipping is a major component in the total cost. Which is fairly rare. In the end the industry is tied to the overall economy much more than there specific costs.
- robryan 11y agoAs long as there is enforcement, so your competitors can't simply ignore or not properly implement changes and gain a pricing advantage.