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The current price changes are due to a lack of supply, which the market is rationing. Remember firms will always try to charge a fortune for their stuff. It's
by neilwilson 5y ago
The current price changes are due to a lack of supply, which the market is rationing.
Remember firms will always try to charge a fortune for their stuff. It's only competition that stops that happening. Competition is excess supply, or at least excess supply capacity.
When competition stops being effective, prices go up.
- landemva 5y agoAt least in USA, there is not really a shortage of natural gas or gasoline. Yet the prices have ramped up.
- hgomersall 5y agoThere is a shortage because the oil producers have realised they can ride the OPEC supply restrictions and make more money. US oil producers are not part of the cartel, but they might as well be. As always, someone does well out of inflation.
- neilwilson 5y agoThe question then is why haven't the price rises been subject to competition authority or anti-trust action. https://www.theguardian.com/commentisfree/2021/nov/11/us-inflation-market-power-america-antitrust-robert-reich https://www.theguardian.com/commentisfree/2021/nov/11/us-inf...