Comment by Pet_Ant
10 hours ago
Yes, anywhere there is a race to the bottom. That is why you see cartels rise up, like unions are cartels. Things that are not cartels generally have ever diminishing margins.
10 hours ago
Yes, anywhere there is a race to the bottom. That is why you see cartels rise up, like unions are cartels. Things that are not cartels generally have ever diminishing margins.
I see the rising of cartels more just the inevitable consequence of market systems where some players just getting bigger and bigger. Then when only a few large players are left, they collude (either openly, or just by unspoken agreement). So less of a race to the bottom, but a race to the top.
I think we agree. To risk being trampled by a race to the bottom, they choose to rise above by forming a cartel.