Quote:
Originally posted by punkworld
Low prices can be bad for consumers in the long run. Two possible scenarios:
#1: A few big companies with lots of cash drive their competition out of business by underpricing their products. Then, when the competition is gone, they can raise the prices as much as they want.
#2: A very competitive market can prevent companies from freeing up resources to improve infrastructure and technology, leading to an overall decrease in quality in the long run.
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i challenge that idea.
#1, follow this idea, dialup providers should be a monopoly now.
#2 at the point where it is a competitive market, it is when companies DO improve their technology. They differentiate from their competitors by offering a different product (product placement) Quality will be better in the long run as many more firms enter the market. BUT for the initial company investing into R&D, they will be the ones with the most to lose... BUT they would also have a first mover competitive advantage.