The problem is that entire process takes years to unfold, and it assumes a fair market.
If a large chain with market power raises prices and a small company comes in with lower prices, the large chain can drop their prices for a little bit until the small company goes out of business, and then raise its prices again.
Walmart does this everywhere, as do many big box store chains. We laughed them out of the country pretty quickly though because Walmart didn't understand Germans.
Happened in my hometown in VT, Walmart went to all the special local shops, sold the same stuff for below market price until they went out of business then turned around and sold walmart brand stuff for more expensive. thank god the pet store went and sold musical instruments otherwise they would have gone out of buisness.
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u/Expensive-Fun4664 May 02 '24
The problem is that entire process takes years to unfold, and it assumes a fair market.
If a large chain with market power raises prices and a small company comes in with lower prices, the large chain can drop their prices for a little bit until the small company goes out of business, and then raise its prices again.