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The pricing system still works just fine, for the most part you cannot do predatory pricing for long because of arbitrage. If you sell stock below cost, I can b
by gridlockd 6y ago
The pricing system still works just fine, for the most part you cannot do predatory pricing for long because of arbitrage. If you sell stock below cost, I can buy it all up till you are out of money, then sell it at a profit.
Even for those things where you cannot arbitrage (like Uber rides), the money-losing can't go on forever and prices will rise again, unless Uber figures out a way to cross-subsidize like Amazon.
- vertex-four 6y agoYou can only buy it up and sell it at a profit if what is being sold is a good, not a service or licensed code with attached terms and conditions. And with the advent of small enough computers, nearly nothing is a pure good.
- gridlockd 6y agoSure, maybe in the future every Banana is bluetooth-enabled and will be sold exclusively at branded Banana stores - at a massive loss. We can talk about market failure again if that actually happens. For now, I don't see it.