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We have overcapacity that could lead to the formation of cartels if profit margins remain small. We need more companies in this game, not less, but with overca
by vit05 10y ago
We have overcapacity that could lead to the formation of cartels if profit margins remain small.
We need more companies in this game, not less, but with overcapacity, who would like to join?
- Confusion 10y agoNone, and preventing cartels is one of the clear cut examples of why we need a government. To uphold laws against such anti-competitive behavior.
- fennecfoxen 10y ago> We need more companies in this game, not less Unsupported assertion. There are both positive and negative aspects to more companies. Consolidation isn't just profitable because it turns an industry into a cartel, but because there are real economies of scales in some industries, especially logistics. This could go either way. > with overcapacity, who would like to join? No one needs to join until the overcapacity goes away, do they?