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>Marc gets "closest to the pin" for me when he says "if Amazon was a monopoly, it would be raising prices." That's not really what he says, he said that if the
by ameister14 12y ago
>Marc gets "closest to the pin" for me when he says "if Amazon was a monopoly, it would be raising prices."
That's not really what he says, he said that if they raised prices, Krugman would take that as evidence of monopoly behavior as well. Monopolies don't always raise prices; sometimes they keep them quite low.
- pkaye 12y agoMarc should know about monopolies. Microsoft started giving web browsers for free to undercut Netscape's business model. Once your competitors go out of business, you would be free to raise your prices.
- splintercell 12y agoBut the question is, when have companies manage to kick their competition out of business and raised prices? More importantly, if the theory is: "Amazon/Microsoft/ETC is trying to underprice and drive its competition out of business, and not just doing good business.", then what is the falsifiability test of this theory? How do you know whether Amazon isn't just the best and cheapest service provider out there?