Re:Uber gets sued over alleged ‘Hell’ program to track Lyft ...
by logicallee on Monday April 24, 2017 @08:16PM
(#14189698)
I will answer you simply and I hope concisely. Most industries have an incredibly high barrier to entry: if you woke up tomorrow wanting to sell heavy farm equipment, you felt this is what you were on this planet to do, the chances that you would be selling heavy farm equipment 12 months later is less than 0.0005%.
As such under natural conditions there are few competitors in most industries. This is natural.
When incumbents apply even a modicium of "stop competitors" sauce, what had been "nearly impossible" can become "impossible." One of many, many examples of this would be dropping prices until new competitors are out of business.
For a lot of further examples that might expand your thinking but which don't for the most part apply to Uber, look up Monopoly behaviors.
But in short, with very good reason, what modern society has determined is that with regard to raising barriers of entry against potential competitors, the only fair thing to do is to completely ignore them.
Responding to them even minimally, such as dropping your prices until they're dead, is not considered in the interests of society over the long term. For similar (though not exactly the same) reasons, it is considered standard practice not to have a single strategic meeting with all of the direct competitors in the room, such as regarding pricing or other strategic aspects.
Again, what society has determined is that competitors need to, largely, ignore each other, and operate with respect to the market as though their competition did not exist.
I'm no professor, but since your question seems in earnest, after Googling the concepts I've mentioned please let me know if you are still of the same opinion as when you wrote your comment.
As such under natural conditions there are few competitors in most industries. This is natural.
When incumbents apply even a modicium of "stop competitors" sauce, what had been "nearly impossible" can become "impossible." One of many, many examples of this would be dropping prices until new competitors are out of business.
For a lot of further examples that might expand your thinking but which don't for the most part apply to Uber, look up Monopoly behaviors.
But in short, with very good reason, what modern society has determined is that with regard to raising barriers of entry against potential competitors, the only fair thing to do is to completely ignore them.
Responding to them even minimally, such as dropping your prices until they're dead, is not considered in the interests of society over the long term. For similar (though not exactly the same) reasons, it is considered standard practice not to have a single strategic meeting with all of the direct competitors in the room, such as regarding pricing or other strategic aspects.
Again, what society has determined is that competitors need to, largely, ignore each other, and operate with respect to the market as though their competition did not exist.
I'm no professor, but since your question seems in earnest, after Googling the concepts I've mentioned please let me know if you are still of the same opinion as when you wrote your comment.