Re:Dockworkers at ports from Maine to Texas go on strike
by wskinner on Tuesday October 01, 2024 @03:54AM
(#41705733)
If that is true, then what stops port operators from raising prices from their present level and pocketing the free money? In reality, demand curves slope down and the surplus from efficiency improvements is split between buyers and sellers. And with the lower costs that result from efficiency improvements, ports will be able to move more goods per unit of time. Even with the unrealistic assumption that the surplus is entirely captured by the port operators, buyers and sellers of goods will benefit from the increased volume.
Re:Dockworkers at ports from Maine to Texas go on strike
by jjav on Tuesday October 01, 2024 @04:08AM
(#41705811)
> If that is true, then what stops port operators from raising prices from their present level and pocketing the free money?
They do raise prices, gradually.
But raising prices is harder because users complain in many ways. Keeping prices the same while reducing your costs (thus improving profits) is much easier, nobody notices.
Mostly true. Only if there is huge competitive pressure will the prices be forced to go down. Otherwise, those owners simply make more profit now and keep prices the same.
With ports, you don't have much competitive pressure because a competitor can't just another mega-port next to the existing one, there is no such space available.