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No idea how an increased number of vets would prevent capital from consolidating this industry.
by guelo 4y ago
No idea how an increased number of vets would prevent capital from consolidating this industry.
- astrange 4y agoYou can’t have a monopoly in an industry with no barriers to entry. Cartels aren’t stable because every newcomer has an incentive to defect.
- verve_rat 4y agoIt costs more than zero dollars to set up a new vet clinic. I'd bet a bunch of the shit they need is really expensive.
- pclmulqdq 4y agoCapital alone can't maintain a cartel. Investors can partner with doctors to set up a new vet clinic to help break the cartel, and there are significant rewards for both. In turn, the competition lowers prices across the board. Cartels are essentially a prisoner's dilemma without rules (like licensure) enforcing them.