Re:IMF: Largest driver of EU inflation is corporate profits
by Kbelicius on Tuesday June 27, 2023 @07:51AM
(#36491575)
> If a company can win a market, that begs the question why. Are there regulatory barriers preventing competition? Can competitors not compete on price?
A reason why a new competitor might not be able to compete on price is because of capital disparity. The winner can lower prices, buyout the competitor or if that fails they can always turn to buying out distributors/suppliers/key employees of their competitor
The answer is the former then we should remove governmental barriers to competition. If competitors can't theoretically undercut the price, then it's hard to see how more competition would favor the buyers. Surely they're not better off with 10 competitors at Double the price.
Last, there is the issue of time. Competition doesn't happen overnight