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""" Through horizontal integration in the refining industry—that is, the purchasing and opening of more oil drills, transport networks, and oil refiners—and, ev
by hellojesus 3y ago
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Through horizontal integration in the refining industry—that is, the purchasing and opening of more oil drills, transport networks, and oil refiners—and, eventually, vertical integration (acquisition of fuel pumping companies, individual gas stations, and petroleum distribution networks), Standard Oil controlled every part of the oil business. This allowed the company to use aggressive pricing to push out the competition.
"""
https://stacker.com/business-economy/15-companies-us-government-tried-break-monopolies https://stacker.com/business-economy/15-companies-us-governm...
Standard Oil, the classic example, was destroyed for operating too efficiently.
- specialist 3y agoHow did customers benefit?
- hellojesus 3y ago> This allowed the company to use aggressive pricing to push out the competition. The consumers got the lowest prices.
- specialist 3y agoStandard was notorious for price gouging and using those profits to buy their way into other markets. Any other examples?
- hellojesus 3y agoSource? Besides price gouging is fine and shouldnt be illegal.
- TeMPOraL 3y agoUntil the last competitors are forced out of the market; after that, it's just providing the shittiest service possible without it being clearly fraud, priced at the maximum the market can bear.
- hellojesus 3y agoAgreed. But doing that invities new entrants into the market, which provodes competition and forces efficiencies back into the market. It is cyclical, and barriers to entry tend to help the inefficient incumbent.