Re:California regulator seeks to shut down 'learn to code' b...
by gnarbarian on Wednesday January 29, 2014 @06:48PM
(#7148032)
whether the regulator has been paid off or not. seriously though,
barriers to entry, the number of competing firms, anti competitive behavior etc.
Low barriers to entry mean that if existing firms collude to artificially raise prices a new competitor may easily enter the market to undercut them.
A larger number of firms makes collusion less likely (see OPEC for example). Their attempts to collude are often met with one member state undercutting the agreed upon price and getting most of the business.
Other factors are also in play such as whether the industry is most efficiently served by a single entity as in a "natural monopoly"
barriers to entry, the number of competing firms, anti competitive behavior etc.
Low barriers to entry mean that if existing firms collude to artificially raise prices a new competitor may easily enter the market to undercut them.
A larger number of firms makes collusion less likely (see OPEC for example). Their attempts to collude are often met with one member state undercutting the agreed upon price and getting most of the business.
Other factors are also in play such as whether the industry is most efficiently served by a single entity as in a "natural monopoly"