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Cartels don’t mean low quality though, that’s a completely separate and largely orthogonal issue. You don’t even remotely need a cartel for leadership to focus
by masklinn 2y ago
Cartels don’t mean low quality though, that’s a completely separate and largely orthogonal issue. You don’t even remotely need a cartel for leadership to focus on value extraction and tank the products.
- lazide 2y agoCartels are a simple type of monopoly. It’s a lot easier to be shitty when customers don’t have other options.
- boringg 2y agoActually it does mean lower quality --> Lack of competition means that the product quality typically suffers as a result of rent seeking behavior.
- poulsbohemian 2y agoThis is a key point: historically, Burger King, McDonalds, Wendy's, etc often sourced their fries out of the same factory, but to different standards. Think starches, batters, fry dimensions, even type of potato in some cases. These companies competed not only on price but also in product consistency.