3 ms·
A huge problem are the cartels that are usually 2-3 companies that has almost all the market share. They increase the prices, which reduce demand, then they tel
by z3t4 3y ago
A huge problem are the cartels that are usually 2-3 companies that has almost all the market share. They increase the prices, which reduce demand, then they tell the producers to lower the production in order to keep the prices artificially high. If we want to keep the capitalist system governments need to address corruption, monopolies and cartels, and allow free trade between countries. Anything that hinders competition should be illegal. If you own a platform or network you must allow competitors to operate for a reasonable cost. Any mergers that would allow one player to grow beyond 5% market share should not be allowed. (in order to make sure that in any market there are at least 20 competitors). Anything that is anti-competitive should not be allowed. Only way to compete should be to make either a better, or a cheaper product. Our governments are a joke, they are charades and full of corruption.
- everforward 3y ago> Only way to compete should be to make either a better, or a cheaper product. I think this is a core part of the anti-competitive problem, though. Economies of scale mean that a company with a 50% market share is going to make the cheaper good, all else equal. We would effectively need to increase competition at the cost of increasing efficiency to make that work (e.g. by banning mergers of larger players).