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by fdupoo
3372 days ago
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I was going to chime in, but you nailed it here. Absorbing losses until your competition goes out of business is called price gouging. It's considered unethical and in many current cases is actively punished worldwide. Advantageous access to funding is usually (but not always) the enabler. In the early 20th century US Industry invaded Brazil with much lower interest rates and absolutely decimated Brazil's budding manufacturing sector, to which it has never recovered. Then there's Wal-mart in the US -- Amazon's strategy is not unlike Wal-mart's was (ream the competition in a price war with lower prices and ginormous investments in logistics technology, which bring competitive cost-savings). It's impossible to beat that triad (low prices, being flush with outside capital, huge investments in cost-savings). Other businesses without all that money can't keep prices low and invest heavily at the same time. Another advantage:You hardly need to advertise. You make a name for yourself with the good deals you give everyone. I don't think it's fair. I don't shop at a wal-mart, I don't use amazon, and I don't use uber(never have). That's about the only solution I can see: don't patronize scumbags. Maybe one day the banking system will be less democratic. For now, the bankers pick favorites and those favorites become ever more favorable, because the goal of these schmucks is the centralization of wealth-- so why not get to centralizing it? |
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No, it's called dumping. Price gouging is a different unethical pricing maneuver.
https://en.m.wikipedia.org/wiki/Dumping_(pricing_policy)
https://en.m.wikipedia.org/wiki/Price_gouging