GS_Dirtboy
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- Mar 10, 2012
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I think I'm missing a piece of the puzzle. Here is the way I understood market forces to work.
Grocer A has 12 apples for $20
Grocer B has 12 apples for $20
They split the apple market 50/50
Grocer A gets greedy. He decides to raise his price to $22
Grocer B keeps his apples at $20
Grocer B gains 20% more of the apple market.
Grocer A and Grocer B have a coffee and decide to both raise their prices to $22
Grocer A and Grocer B then get a phone call from the Federal Trade Commission or the Department of Justice.
How does it work here? One would think that people have a reasonable access to information and can freely choose the lowest price.
GS
Grocer A has 12 apples for $20
Grocer B has 12 apples for $20
They split the apple market 50/50
Grocer A gets greedy. He decides to raise his price to $22
Grocer B keeps his apples at $20
Grocer B gains 20% more of the apple market.
Grocer A and Grocer B have a coffee and decide to both raise their prices to $22
Grocer A and Grocer B then get a phone call from the Federal Trade Commission or the Department of Justice.
How does it work here? One would think that people have a reasonable access to information and can freely choose the lowest price.
GS