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I don’t think the problem here is that Amazon is doing something unhelpful. Of course, they have more information than anyone and can set prices better. The is

by bertil 7y ago

I don’t think the problem here is that Amazon is doing something unhelpful. Of course, they have more information than anyone and can set prices better. The issue is that (according to legal theories on anti-trust) market control, no matter how helpful, is anti-competitive in the long run. Even if companies don’t have to set their own prices, they would be crazy not to: over-price and they don’t sell anything; under-price and they leave money on the table. I know those rules sound like we are punishing success and good service but the idea is that if a company dominates, no one will challenge them. The service won’t improve or innovate, new companies won’t be able to scale to prove their ideas. It has happened repeatedly in the past, for beloved services. Thinking about those things dynamically helps.

dwild 7y ago
> over-price and they don’t sell anything Well, that depends on the service itself. I often buy from Amazon not because it's cheaper, but because I know that shipping will be quick, even if it's imported the charge won't be taken by the carrier with an absurdly high fee, that if something has to be returned it will be easy. I even usually avoid third-party sellers on Amazon because of that, even if they are much cheaper. > under-price and they leave money on the table You just said that overprice and they won't sell anything. Seems like the alternative isn't money on the table but nothing at all on the table. > if a company dominates, no one will challenge them I think that's the wrong part. If someone can do just as good or better than Amazon, they'll do it. Amazon is the proof itself, there's so many products that still have third party on Amazon itself that compete against Amazon. This option will just let Amazon have access to a bigger inventory for a lower cost than owning it themselves... That's not a huge advantage. I'm sure their algorithmns are already pretty good to balance the right amount of stock.
Spooky23 7y ago
Anti-trust is dead. DoJ won’t pursue, and a company like Amazon would probably kill future action in the Supreme Court.

by bertil 7y ago

dwild 7y ago

> over-price and they don’t sell anything Well, that depends on the service itself. I often buy from Amazon not because it's cheaper, but because I know that shipping will be quick, even if it's imported the charge won't be taken by the carrier with an absurdly high fee, that if something has to be returned it will be easy. I even usually avoid third-party sellers on Amazon because of that, even if they are much cheaper. > under-price and they leave money on the table You just said that overprice and they won't sell anything. Seems like the alternative isn't money on the table but nothing at all on the table. > if a company dominates, no one will challenge them I think that's the wrong part. If someone can do just as good or better than Amazon, they'll do it. Amazon is the proof itself, there's so many products that still have third party on Amazon itself that compete against Amazon. This option will just let Amazon have access to a bigger inventory for a lower cost than owning it themselves... That's not a huge advantage. I'm sure their algorithmns are already pretty good to balance the right amount of stock.

Spooky23 7y ago

Anti-trust is dead. DoJ won’t pursue, and a company like Amazon would probably kill future action in the Supreme Court.