(07-19-2014, 09:04 PM)Octo Wrote: Maybe some corporations would think like that, but they'd lose their business to the businesses who aren't. Competition.
i think competition is a thought terminating cliche that works in magical ways... if competition regulated the price of goods the profits in a perfect capitalist society would converge to 0 as one competitor would be more desperate than another selling his goods more and more at the manufacturing costs. (the unskilled labor market comes to mind)
but what we observe in reality is a bit different: rising profits and rising prices.
so competition seems to work pretty good in textbooks but not so good in real life.
the reasons for that are manifold.