Edit post

Edit your reply below.

Post Body
Enter your post below.
[quote]QUOTE: Originally posted by MP173 7. If a company eliminates a line rather than sell to a competitior, so be it. In business, you want pricing leverage. When I compete against others, I want the absolute best advantage I can have....which usually means as few competitors as possible. When I am told I can quote on a project and find out there are 29 other bidders, like I recently did, I politely decline. Now, with that being said, a railroad that eliminates capacity should have absolutely no right to federal funds for increasing capacity....at least in MHO. ed [/quote] Ed, You've hit the nail right on the head as to why railroad transporters SHOULD NEVER BE ALLOWED TO OWN THEIR ROW! Destruction of infrastructure has major negative impacts on the economy, even if the destroyer "gains" temporary benefits from ostensibly eliminating competition. This is why businesses that engage in monopolistic practices (and the elimination of potential competition is one of those practices) end up creating an economy that runs counter to Adam Smith's tried and true vision of enlightened self interest. When businesses operate in a competitive marketplace, their actions of self interest end up buttessing the economy. When businesses operate in a monopolistic marketplace, their actions of self interest end up degading the economy. I would also argue the point you made about wanting to compete against few if any competitors. The whole point of competition is to bring out the best in the participants, so when you have a situation where you have eliminated your competition, you no longer will bring out your best efforts, and your product or service will suffer as a result. Why do you think the economies of the former Soviet bloc were so pathetic? They no longer had incentive to improve. Without competition, the marketplace is worthless, in that it's affect upon society will no longer provide any discernable benefits. If you really want pricing leverage, try doing a better job of satisfying your customers. Monopolistic pricing leverage is short lived, as it invarably results in a product or service which no longer engenders societal benefits. A satisfied customer will pay more for your product or service, and the resulting increase in income will do more to pad your wallet than the false sense of security you get from non competitive price gouging.
Tags (Optional)
Tags are keywords that get attached to your post. They are used to categorize your submission and make it easier to search for. To add tags to your post type a tag into the box below and click the "Add Tag" button.
Add Tag