Government Explained 2: The Special Piece of Paper
Law without Government
Juan:I'm afraid I still don't get it. Are you saying companies don't strive to lower prices in order to attract new customers ?
A company cannot set prices lower than it has supply to meet demand. It cannot set prices higher than it wants to keep supply in reserve. Ultimately it is the demanders that choose prices as much as the company.
Juan: Let's say supplier 1 is more efficient than supplier 2, so supplier 1 can sell at a lower price, which benefits consumers and at the same time forces supplier 2 out of business...I thought that's what competition was all about, no ?
If supplier 1 is more efficient than supplier 2, then it will make more profit from selling its supply, but it won't be able to sell at a lower price unless it has produced enough supply to meet all the demand for the good. If it has not then there will be a shortage from supplier 1 and supplier 2 will be able to sell the same good at higher prices.
The fallacies of intellectual communism, a compilation - On the nature of power
Stranger: I am confused about your question. Why wouldn't a company have the incentive to urbanize their land because they have a lot of it?
I am confused about your question. Why wouldn't a company have the incentive to urbanize their land because they have a lot of it?
I am not saying that they wouldnt have incentive to urbanize their land. I am asking if a company loses some incentive to keep prices low for consumers if their is no chance that they can be challenged by another firm because they physically own the land.
...And nobody has ever taught you how to live out on the street, But now you're gonna have to get used to it...
mr_anonymous: I am not saying that they wouldnt have incentive to urbanize their land. I am asking if a company loses some incentive to keep prices low for consumers if their is no chance that they can be challenged by another firm because they physically own the land.
A company has an incentive to supply as much as there is demand for a good. The existence or nonexistence of another producer makes no difference in how it prices, other than it makes it possible to make economies in overhead and supply more in aggregate.
Stranger:A company has an incentive to supply as much as there is demand for a good. The existence or nonexistence of another producer makes no difference in how it prices,...
...other than it makes it possible to make economies in overhead and supply more in aggregate.
February 17 - 1600 - Giordano Bruno is burnt alive by the catholic church. Aquinas : "much more reason is there for heretics, as soon as they are convicted of heresy, to be not only excommunicated but even put to death."
Competition exists with all other choices that demanders can make. It is not very relevant when a consumer is choosing to buy crude oil from supplier 1 or supplier 2. It's the same good and the same global supply.
Juan: The existence or nonexistence of another producer makes no difference in how it prices,...[/
I am also a bit confused..
Stranger:Competition exists with all other choices that demanders can make.
It is not very relevant when a consumer is choosing to buy crude oil from supplier 1 or supplier 2. It's the same good and the same global supply.
Stranger:A company cannot set prices lower than it has supply to meet demand. It cannot set prices higher than it wants to keep supply in reserve. Ultimately it is the demanders that choose prices as much as the company.
If supplier 1 is more efficient than supplier 2, then it will make more profit from selling its supply, but it won't be able to sell at a lower price unless it has produced enough supply to meet all the demand for the good.
Juan:Yes, and that is exactly what it will do - it will produce more and sell the good cheaper. Again, it's called competition. Maybe you're trying(and failing) to prove that competition in a free society doesn't really matter because your idea of a free society is actually some sort of monarchy where people live as tenants in land 'privately' owned...?
I don't see how that follows. People who rent because they don't want the hassle of being landowners will benefit from competition between all the landowners.
Stranger:I don't see how that follows.
People who rent because they don't want the hassle of being landowners will benefit from competition between all the landowners.
Okay, I am still confused about some aspects of this.. I know this question is kind of random and not directly related to the thread, but its not worth starting a new one for. Does anyone know of any specific pieces (either essays, books, papers, mises.org audio etc.) that go into detail about how a private road system would work. I know someone mentioned Walter Block, but I was hoping somebody might know of a specific piece by Block, or any one else for that matter...
Thanks
Juan: Stranger:I don't see how that follows. Never mind my comment about your motives. The point is, this assertion of yours A company has an incentive to supply as much as there is demand for a good. The existence or nonexistence of another producer makes no difference in how it prices, other than it makes it possible to make economies in overhead and supply more in aggregate. is false. With respect to People who rent because they don't want the hassle of being landowners will benefit from competition between all the landowners. that's true, but not related to the subjects being discussed. Oh, wait. You were arguing that competition doesn't really matter - but now it does ?
Competition does not matter in how prices are set, because prices are always set by the equilibrium in supply and demand. Whether there is one or many supplier makes no difference to that. If I am the only supplier and I supply more, I will earn a lower price.
If I am the only landowner and I make more land available to rent, I will earn a lower price. The amount I rent out will depend on the marginal cost of producing land to rent. The optimal amount of land that I will rent is set by the market, not me.
mr_anonymous: Okay, I am still confused about some aspects of this.. I know this question is kind of random and not directly related to the thread, but its not worth starting a new one for. Does anyone know of any specific pieces (either essays, books, papers, mises.org audio etc.) that go into detail about how a private road system would work. I know someone mentioned Walter Block, but I was hoping somebody might know of a specific piece by Block, or any one else for that matter... Thanks
This is a good index: http://marketurbanism.com/academic-links/
Stranger:Competition does not matter in how prices are set,
because prices are always set by the equilibrium in supply and demand.
Whether there is one or many supplier makes no difference to that.
The amount I rent out will depend on the marginal cost of producing land to rent.
The optimal amount of land that I will rent is set by the market, not me.
Stranger: This is a good index: http://marketurbanism.com/academic-links/
Great Information. Thank you!