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> Unless there is a monopoly, companies have to offer the lowest / best deal or they go out of business quickly. I don't know why you think companies like comp
by sangnoir 4y ago
> Unless there is a monopoly, companies have to offer the lowest / best deal or they go out of business quickly.
I don't know why you think companies like competition more than they like profits. Companies raise their prices in lockstep a lot: sometimes it is coordinated, mostly its not. Despite your faith in perfect competition: established companies do not want a race to the bottom - which is a classic iterated prisoner's dilemma scenario.
- worker_person 4y agoBet most of those rely on heavy regulations of the government to prevent competition.
- sangnoir 4y agoA number of things raise the bar: CapEx, regulations, or even high marketing costs (e.g. if one wants to compete against Coca-cola/Pepsi: making flavoured water isn't hard, over-regulated or expensive, but customer acquisition in that space is expensive). Incumbents rarely want to rock the boat against other, similar-sized incumbents.