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Necessary to cover increased costs and manage actual risk. Where there is a lack of competition or opportunity for collusion companies can and do exploit the si
by xcv123 3y ago
Necessary to cover increased costs and manage actual risk. Where there is a lack of competition or opportunity for collusion companies can and do exploit the situation rationally. Just because it is rational doesn't make it legal or ethical.
- listenallyall 3y agoA minute ago you dismissed the concept of a risk premium and claimed regulators needed to step in. Now it's ok for businesses to manage actual risk?
- xcv123 3y agoWhy is this so difficult for you to understand? This is not complicated. I am not dismissing the concept of a risk premium. I am saying they can exploit the concept of a risk premium to justify an excessive increase in prices, beyond what is reasonable. Companies can collude to set higher prices and blame inflation. Antitrust laws and regulations exist for a reason. Companies have been cheating since the beginning of the history of companies.
- listenallyall 3y ago> I am not dismissing the concept of a risk premium You wrote: disguised as a "risk premium" Saying something is just a disguise for something else and, for additional emphasis, putting air quotes around it is an unmistakable dismissal of the concept. Hard to imagine how you could have been more clear.
- xcv123 3y agoSo there is a risk premium, and then there is a "risk premium". Neither is a dismissal of the concept itself. It's about the intentions of the companies.