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That doesn't make them a monopoly; it makes them a preferred option by consumers. In the US, antitrust laws are concerned with vertical domination of a market.
by EpicEng 7y ago
That doesn't make them a monopoly; it makes them a preferred option by consumers. In the US, antitrust laws are concerned with vertical domination of a market. The consumers of these small towns made a _choice_.
- NotSammyHagar 7y agoIt makes them an effective because Walmart will lower prices to put other stores out of business.
- EpicEng 7y agoAre they losing money on it? Lowering prices to compete isn't a crime.
- digitaltrees 7y agoIt is a crime if the intent is to gain so much market share that pricing power is achieved at which point predatory pricing is pursued. This is an old business model; operate at a loss until your competition is driven out of business and then sit back and collect windfall profits. This was one of the main drivers of anti trust policy to begin with.
- EpicEng 7y agoI understand that, "operate at a loss" being the key component there. Is that what's happening?
- stale2002 7y agoLower prices is explicitly what the government encourages. You are describing a benefit, not a drawback.
- digitaltrees 7y agoNot if it is part of a pattern of anti competitive practices. If you lower prices with the intent of putting competitors out of business that is not competition.