Re: Monopolies wouldn\'t exist in the free market?
[ QUOTE ]
[ QUOTE ]
The bad sort of monopoly isn't achieved by undercutting or making a better product, it's achieved by buying up all other providers of that product and then price gouging. This is a hobby of mine in the World of Warcraft auction house.
[/ QUOTE ]
Luckily it doesn't work in the real world. "Predatory pricing" is the Unicorn of economics. There's a lot of mythology written about it, but nobody has ever observed it.
[/ QUOTE ]
Incorrect. For example, airline prices in Cincinnati. Delta has a near monopoly on the city. Delta has extremely high prices (the airport was the 2nd most expensive in the country last year, behind Honolulu and ahead of Anchorage). If anyone comes in (which airlines have tried to do in the past), Delta drops prices temporarily until they leave.
|