3 ms·
If TP costs $1 a roll to make and is currently selling at $10 a roll, the store selling for $9 wins the game. Then the store selling for $8, ...$7, etc. all th
by gorgoiler 7y ago
If TP costs $1 a roll to make and is currently selling at $10 a roll, the store selling for $9 wins the game. Then the store selling for $8, ...$7, etc. all the way down to the point where no one is left who is willing to compromise their living standards by dropping their profit margin below a certain percentage.
The rules of the game are that:
(1) If you collude to keep prices up you go to jail.
(2) Citizens must be allowed to move about freely to find the cheapest TP.
(3) It’s also cheating if you own such massive amounts of the economy that what you lose in TP profits you gouge back in cell phone bills.
(4) A basic standard of living has to be upheld by society to stop the TP manufacturers from only hiring 20 somethings, and contriving a social world that venerates business, hustle and money above all else such that their workers have to live with housemates well into their 30s in tiny apartments without gardens which cost them 65% of their salary in rent to landlords whose debt is owned by the TP companies financing subsidiary ok I need a cup of tea and a back rub now.
- rndmio 7y agoWhen demand outstrips supply by a large margin (and supply cannot be increased) there is no need for collusion for prices to be high, and no incentive to lower your own prices to compete because you can't sell any more of a good you've sold out of.