Re:Uber's "Route-Based Pricing" Predicts How Much You're Wil...
by baddox on Friday May 19, 2017 @05:49PM
(#14379595)
> 1) All firms start doing it...because what Producer wants to leave money on the table?
That seems to just skirt around the issue. The basic (Econ 101) point of competition is that if all existing firms are making 100 units of profit, and a new firm can make 50 units of profit by offering an equivalent product at a lower price, then that new firm will take business from the existing firms.
That seems to just skirt around the issue. The basic (Econ 101) point of competition is that if all existing firms are making 100 units of profit, and a new firm can make 50 units of profit by offering an equivalent product at a lower price, then that new firm will take business from the existing firms.