🎓 Dr. Freemo :jpf: 🇳🇱 on Nostr: npub1jflcd…gfmdd My first reaction to “just undercut costs within 50 miles of the ...
npub1jflcdvljl0n8hlz27798d0044rxwkqz69gapvcctt4p4gdt4kasqjgfmdd (npub1jfl…fmdd) My first reaction to “just undercut costs within 50 miles of the new station to rates so low it would operate at a loss” is: sounds good to me, problem solved!
How does that solve the problem? The company doesnt loose any money, they stay in business, and all new companies are prevented from forming that could possibly compete… what problem is being solved? I guess there’s an implicit argument here though that people will be scared away from entering a market dominated by someone with those kinds of economies of scale or whatever. But… do we see that much in practice? Megacorps don’t have an infinite capacity for scaring off newbies; a loss is a loss.
No its not that anyone will be scared away.. they are 100% garunteed to go out of business no matter how much they undercut. Why go into business if it is mathematically garunteed to fail?
npub1p34kn5su0fzjmsqx7wegqftnd34xr7as808udkxyltcl9zw6jrqqajwdy6 (npub1p34…wdy6) npub1ukcz3c3ek9ugnmrj37cjm2q9gsaqss5j9dqwpqmx0tgkzudsseqqcp40jn (npub1ukc…40jn)
How does that solve the problem? The company doesnt loose any money, they stay in business, and all new companies are prevented from forming that could possibly compete… what problem is being solved? I guess there’s an implicit argument here though that people will be scared away from entering a market dominated by someone with those kinds of economies of scale or whatever. But… do we see that much in practice? Megacorps don’t have an infinite capacity for scaring off newbies; a loss is a loss.
No its not that anyone will be scared away.. they are 100% garunteed to go out of business no matter how much they undercut. Why go into business if it is mathematically garunteed to fail?
npub1p34kn5su0fzjmsqx7wegqftnd34xr7as808udkxyltcl9zw6jrqqajwdy6 (npub1p34…wdy6) npub1ukcz3c3ek9ugnmrj37cjm2q9gsaqss5j9dqwpqmx0tgkzudsseqqcp40jn (npub1ukc…40jn)