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To: BW2221
"The reason that gas sells for nearly same amount is that it is nearly the same product from one station to the next and there is no practical difference to the consumer. Since they all advertise their price on large signs, any store which sells for a lower price gets more customers. The result is that all area stores quickly equalize prices to the lowest amount which is still high enough to make a profit."

You've just defined price fixing.

I think he just described an efficient commodity market!
399 posted on 04/14/2006 4:22:02 PM PDT by jennyp (WHAT I'M READING NOW: your mind)
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To: jennyp
I think he just described an efficient commodity market!

No, no, no. If you charge the same as your competitors it's price fixing, if you charge more it's gouging, and if you charge less it's dumping. If only we had wise bureaucrats to tell us how much things should cost. Then they could make plans for five year intervals detailing what we should produce. With the right people in charge, surely it would work.

478 posted on 04/14/2006 5:55:25 PM PDT by ThinkDifferent (Chloe rocks)
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