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> They can only do it by competing, and only for as long as they continue to outcompete the alternatives. As soon as they tried to raise prices or reduce qualit

> They can only do it by competing, and only for as long as they continue to outcompete the alternatives. As soon as they tried to raise prices or reduce quality, competitors could spring up to take the market from them. But once four or five different competitors have tried, had Walmart drop prices again to undercut them, and gone out of business, no one else is going to try because they'll know they're doomed to fail. Competitors are required in order to have competition. The Chicago School interpretation of antitrust is as intellectually bankrupt as it is morally.

AnthonyMouse 3y ago
> But once four or five different competitors have tried, had Walmart drop prices again to undercut them, and gone out of business, no one else is going to try because they'll know they're doomed to fail. Suppose Walmart has the lowest price for batteries. The local hardware store goes out of business. Now Walmart doubles the price of batteries. The local grocery store is going to start selling batteries. Walmart has to lower their price again or people will buy them there instead. If they do, the grocery store will still eventually sell their stock to customers who value convenience over the lowest possible price. They may not restock them unless Walmart raises the price again, but as soon as they do, batteries are back at the grocery store. If Walmart never raises their prices the grocery store may never start carrying batteries, but then Walmart can never raise their prices.