3 ms·
Part of this is defacto deregulation allowing suppliers to overcharge smaller stores with less purchasing power than big chains. (The policy not to enforce http
by BobaFloutist 3mo ago
Part of this is defacto deregulation allowing suppliers to overcharge smaller stores with less purchasing power than big chains. (The policy not to enforce https://en.wikipedia.org/wiki/Robinson%E2%80%93Patman_Act https://en.wikipedia.org/wiki/Robinson%E2%80%93Patman_Act).
Part of this is overregulation, with zoning and planning departments enacting policies that make smaller retail spaces less attractive to builders and owners, leading to a low supply, and allowing egregious rent for well located small retail.
Yes, economies of scale likely mean that larger businesses can afford lower prices, but smaller businesses also get to avoid some costs (no large administrative corporate departments necessary for a one-location bodega), so the prices probably don't need to be as far apart as they are.
- twoodfin 3mo agoWhy should the government have anything to say about price negotiations between producers and retailers of frozen pizzas? Robinson-Patman is terrible law that’s more or less impossible to enforce equitably. So it hasn’t been.
- me-vs-cat 3mo agoLax RPA enforcement may have significantly contributed to food deserts. https://www.theatlantic.com/ideas/archive/2024/12/food-deserts-robinson-patman/680765/ https://www.theatlantic.com/ideas/archive/2024/12/food-deser... I hope government representatives have things to say about that.
- twoodfin 3mo agoThat’s not really responsive to my concerns about Robinson-Patman. A world where it’s enforced uniformly and strictly might have some local benefits, but getting the government involved in regulating every wholesale transaction for “fairness” is a recipe for stagnation, corruption, or more likely both.
- me-vs-cat 3mo agoIt is responsive to your question on why the government should have something to say about price negotiations between producers and retailers of frozen pizzas.
- twoodfin 3mo agoGovernment overreach X is good because in a sea of bad consequences, a few good things happen, too? It’s much better for governments to be principled, and only interfere with mutually voluntary engagements by citizens when there’s an urgent harm to remedy.
- me-vs-cat 3mo agoDespite your assumptions, you should realize all I said was that government representatives should care about the topic and have something to say.