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It is only good for consumers in the short term, when there are many other options. But over the long term, why would a company need to compete on price if it'
by jawns 6y ago
It is only good for consumers in the short term, when there are many other options.
But over the long term, why would a company need to compete on price if it's already squeezed out all its competition?
There is also the effect on labor to consider. Is it really a net positive if consumers can save X dollars on products at Walmart if its moving into a community drives down wages by X dollars?
- BurningFrog 6y agoIf the big company raises prices later, it leaves room for competitors to undersell them. I know the popular story is that then they lower prices again, and crush these competitors again, etc. It's an intuitive story, but from what I've read about economists studying this, that "common sense" effect isn't how the real world works.