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77 sats \ 4 replies \ @Coinsreporter OP 21 Aug \ parent \ on: Amazon's huge loses in India "smells of predatory pricing" or something else? econ
They jack the prices as they get full control over market, when they have fully imposed their monopoly, when people can't help buying from them, when they feel, there's no competition visible.
I'm aware of the concept. What I'm saying is that when economic historians have investigated instances of supposed predatory pricing in America, it never actually happened. Prices went down, but were not raised later.
Maybe it has happened elsewhere. I'm not familiar with any scholarship on that. It would be more likely in a heavily regulated place like India, because there are many barriers to (re)entry.
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I'm sorry! I wasn't trying to tell you the concept, just wanted to extend what I understood from your comment. My bad! I took it the other way.
Prices went down, but were not raised later.
It may be the effect of less middleman between manufacturing and buyers. It's also happening in India. The thing that we buy online through Amazon or Flipkart cost us lesser than off line stores. It's going on for years now. The prices actually never rose here as well.
TBH, I don't think that online retailers are bad for economy in the long run. The small shops of 'Baniyas' in India are scattered like a net of swindlers and above them there are middlemen who have their share in profits.
Online retailers are better for consumers!
Also good for creating jobs.
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No worries.
When Walmart was rapidly expanding, there were a lot of similar complaints here. I'm sympathetic to people who don't like these changes, but the point of consumer sovereignty is that we get to support who we want. It's up to those small businesses to make it worthwhile to their customers, not the other way around.
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