3 ms·

You did not mention the consequences of Amazon’s actions which are a net positive for people. Amazon underprices and offers a better service like Prime with 2-

by whb07 8y ago

You did not mention the consequences of Amazon’s actions which are a net positive for people. Amazon underprices and offers a better service like Prime with 2-day delivery. Competitors start freaking out and begin launching responses to tackle this. Industry changes for the better. So yes. Capitalism at its finest. Offer a better price or a better product to compete in a marketplace. Without Amazon, the brick & mortars would have never begun to think about such things like a better online experience, online-to-store pickup, etc.

hedora 8y ago
From personal experience a decade or so ago, Kroger charged much higher prices for substandard goods in poor/minority, transit-dependent communities, and used the result to subsidize stores in well-to-do areas. This helped them gain market share in competitive neighborhoods. Amazon certainly engages in price discrimination, but I’d bet its algorithms weigh race much less than the incumbents. Also, the studies I’ve seen suggest amazon charges rich people more, which is a lot less slimy than systematically overcharging poor minority groups.
- assblaster 8y ago
  >Kroger charged much higher prices for substandard goods in poor/minority, transit-dependent communities Kroger isn't a monopoly. If Kroger was truly price gouging as you're alleging, then any other company can just sweep into that neighborhood and take all of Kroger's business. As Black economist Thomas Sowell notes: "despite higher markups in prices in low-income neighborhoods, there is a lower than average rate of return for businesses there — one of the reasons why businesses tend to avoid such neighborhoods." In other words, the cost of doing business in poor neighborhoods is higher. You can attribute this to higher taxes in urban areas, higher cost of transporting goods to the area (increased traffic leading to longer duration supply routes, higher insurance requirements for transporters), higher cost of securing the business due to higher crime levels.

by whb07 8y ago

hedora 8y ago

From personal experience a decade or so ago, Kroger charged much higher prices for substandard goods in poor/minority, transit-dependent communities, and used the result to subsidize stores in well-to-do areas. This helped them gain market share in competitive neighborhoods. Amazon certainly engages in price discrimination, but I’d bet its algorithms weigh race much less than the incumbents. Also, the studies I’ve seen suggest amazon charges rich people more, which is a lot less slimy than systematically overcharging poor minority groups.

assblaster 8y ago
>Kroger charged much higher prices for substandard goods in poor/minority, transit-dependent communities Kroger isn't a monopoly. If Kroger was truly price gouging as you're alleging, then any other company can just sweep into that neighborhood and take all of Kroger's business. As Black economist Thomas Sowell notes: "despite higher markups in prices in low-income neighborhoods, there is a lower than average rate of return for businesses there — one of the reasons why businesses tend to avoid such neighborhoods." In other words, the cost of doing business in poor neighborhoods is higher. You can attribute this to higher taxes in urban areas, higher cost of transporting goods to the area (increased traffic leading to longer duration supply routes, higher insurance requirements for transporters), higher cost of securing the business due to higher crime levels.