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> starts charging monopoly prices, and buys any new competitors for 100x earnings so that it can retain a monopoly, including paying commpetitors not to enter
by Frozenlock 11y ago
> starts charging monopoly prices, and buys any new competitors for 100x earnings so that it can retain a monopoly, including paying commpetitors not to enter the field at all.
This kind of mustache-twirling evil plan is insanely expensive. As in insta-bankruptcy expensive. Plus you'd have all kind of things backfiring, like business moving away because their rent, or their employees' rent are too expensive.
> Now, let's say I want to run a monopoly like that.
By all means, go ahead, I'll buy your properties at the foreclosure auctions.
The only way you'd be able to make your evil plan work would be with the support of a government. (With someone else paying the tab.)
- ConfuciusSay 11y agoAre you suggesting that monopolies never occur, or that monopolies automatically lead to bankruptcy? Because history would like to have a word with you... Even Adam Smith thought monopolies were the greatest threat to a functioning capitalist economy.
- simoncion 11y ago> ...like business moving away because their rent Yeah, that happens in SF. Businesses can no longer afford the latest in a series of rent hikes, they close down, and get replaced with a bar or trendy coffee shop. > ...would be with the support of a government. Serious question: Isn't the institution and retention of rabidly anti-development zoning laws government support of what one might call a "natural monopoly"?