try me. when a company's board is charged with maximizing profits (to be paid as dividends, for example) and they fail to do so, they can (and often are) sucessfully sued. There is nothing around that I have heard of that obligates a company to pass along any windlfall that it takes in. if they suddenly find their profit margin up by 20-30% they wold be financially misfeasant to give that money away unless to do so is the only way to retain market share.
Did your neighborhood gas station lower it's prices when the price of oil went down?
And what CSM said:
If you don't believe they will lower their prices, then you must be willing to start a business competing with them in the market place. It would be a gold mine.
"There is nothing around that I have heard of that obligates a company to pass along any windlfall that it takes in."
To state this in your answer regarding your misunderstanding of the free market supports the other poster that pointed out "you have no conception of a free market". The companies competitors will force them to lower the prices, or a new competitor will emerge and do very well in that industry.
"try me. when a company's board is charged with maximizing profits (to be paid as dividends, for example) and they fail to do so, they can (and often are) sucessfully sued. There is nothing around that I have heard of that obligates a company to pass along any windlfall that it takes in. if they suddenly find their profit margin up by 20-30% they wold be financially misfeasant to give that money away unless to do so is the only way to retain market share."
Aren't you the one who questioned my knowledge of economics? I will say this as diplomatically as I can. Please pick up an economics textbook and refresh yourself on the elasticity of demand. I think that what you will find is that price maximization and profit maximization are NOT the same. Why? The answer is contained in your last sentence above: "unless to do so is the only way to retain market share."