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That's dependent on the market actually being efficient. If a consumer walks into a store and sees coffeemakers by ten different brands, but seven are all actu
by munificent 2y ago
That's dependent on the market actually being efficient.
If a consumer walks into a store and sees coffeemakers by ten different brands, but seven are all actually owned by one giant manufacturer and the other three by some American almost-as-giant manufacturer, then a tariff on the former will drive up the price of seven of them and the American manufacturer will almost certainly raise the prices on the remaining three. Otherwise, it's just bad business.
- munificent 2y agoOops, in "actually owned by one giant manufacturer", I meant to say "actually owned by one giant Chinese manufacturer".