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> Credit cards are mostly supplied by a couple huge companies that aren't interested in improving their rates. This situation is called an oligopoly. I don't t
by patates 8y ago
> Credit cards are mostly supplied by a couple huge companies that aren't interested in improving their rates.
This situation is called an oligopoly. I don't think it has something to do with government sanctioned rent seeking.
- Dylan16807 8y agoGovernment-sanctioned rent-seekers are not the only kind. The comment by User23 was about payment system rent-seekers in general, with no mention of the government.
- patates 8y agoYes but the mentioned problem comes from the companies forming an oligopoly.
- scarface74 8y agoThe original comment I replied to was about a software as a service company that was a “rent seeker” because it helped businesses manage thier tax liability. At one small company I worked for, we paid SAAS companies for: - expense reporting and reimbursement (Concur) - managing payroll - Managing retirement benefits - source control hosting (Github) - Infrastructure (Microsoft Azure) - Salesforce (I don’t know what they do) - Training and Compliance - Chat (Slack) - Email, Office software (Microsoft Office 365) - vending services Etc. How are these companies any different than the company that helps businesses manage tax collection? They all saw a business opportunity and my company was glad to pay them so it could focus on its niche.