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>economics teaches us when a player overcharges, others will step in to undercut and take all the market share. A take I've read and stuck with me is that righ
by npteljes 4y ago
>economics teaches us when a player overcharges, others will step in to undercut and take all the market share.
A take I've read and stuck with me is that right now, there's also significant risk. In my country, Hungary, there are also losses introduced by the government, which capped the prices of several popular items. A way for a business to stay afloat is to incorporate this risk into their prices - and I think that this risk also makes the other players more hesitant to undercut. And thereby they all enjoy the benefit of the higher price.