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Not actually arguing that this is what's happening, but they could collude to keep prices low so that the resulting small profit margin doesn't provide any room
by saryant 11y ago
Not actually arguing that this is what's happening, but they could collude to keep prices low so that the resulting small profit margin doesn't provide any room for newcomers.
Straight out of the Standard Oil playbook actually.
- icebraining 11y agoThe argument against Standard Oil was that it kept prices low until their competitors went out of business or were cheap to acquire, and then raised prices as a monopolist. Simply keeping prices low to keep the competition away is just competitive markets working - there's no benefit to consumers in the entrance of new suppliers if they will offer the same product at the same or higher price.
- analognoise 11y agoIirc Walmart was found NOT to be a monopoly because after they depressed prices, they stayed low. Ianal, ymmv on these statements.