Had to replace our microwave last week, found a reliable brand name for ⅓ the price of Amazon’s starting price! – - What’s the big deal shopping Amazon?
Amazon’s Antitrust Paradox: Amazon is the titan of twenty-first century commerce. In addition to being a retailer,it is now a marketing platform, a delivery and logistics network, a payment service, a credit lender, an auction house, a major book publisher, a producer of television and films, a fashion designer, a hardware manufacturer, and a leading host of cloud server space. Although Amazon has clocked staggering growth, it generates meager profits, choosing to price below-cost and expand widely instead. Through this strategy, the company has positioned itself at the center of ecommerce and now serves as essential infrastructure for a host of other businesses that depend upon it. Elements of the firm’s structure and conduct pose anticompetitive concerns—yet it has escaped antitrust scrutiny. This Note argues that the current framework in antitrust—specifically its pegging competition to “consumer welfare,” defined as short-term price effects—is unequipped to capture the architecture of market power in the modern economy. We cannot cognize the potential harms to competition posed by Amazon’s dominance if we measure competition primarily through price and output. Specifically, current doctrine underappreciates the risk of predatory pricing and how integration across distinct business lines may prove anticompetitive. These concerns are heightened in the context of online platforms for two reasons. First, the economics of platform markets create incentives for a company to pursue growth over profits, a strategy that investors have rewarded. Under these conditions, predatory pricing becomes highly rational—even as existing doctrine treats it as irrational and therefore implausible. Second, because online platforms serve as critical intermediaries, integrating across business lines positions these platforms to control the essential infrastructure on which their rivals depend. (continued)
It’s the American way.. capitalism.. Buy out the competition then dominate the market and charge what you will. Amazon is just one of the many players.. it just.. at the moment.. gets bad press because trump has a snit with them. Walmart.. accused of the same.. is in trumps good books and is making America great.. according to trump.
Under the same conditions Trump, being a Bezos wannabe, would sell the water for $200 and $19.95 shipping. Bezos would make huge profits, Trump would fail, file for bankruptcy and blame everyone else. Neither would win a humanitarian of the year award.
ordering on Amazon is an invitation to get stuck with a Prime membership. I spend more time shutting down the next month payment. I don’t buy enough to have Prime an asset. If you want to legislate, make them stop giving a subscription. Besides in Canada Prime TV is crap. I have Crave, Netflix and Britbox
Concretionist about 4 years ago
Ho hum. It’s a business. It’s an incredibly profitable business, but it’s legal. Don’t like their behavior? Legislate!
wyneaux about 4 years ago
“Who can stand in the way when there’s a dollar to be made.”
Peter Garrett, Midnight Oil
Masterskrain Premium Member about 4 years ago
And Hair Furor is STILL pissed off at Bezos because Jeff is MUCH RICHER then Twitler is!
Zebrastripes about 4 years ago
Love the vulture and the snake….
Pickled Pete about 4 years ago
Had to replace our microwave last week, found a reliable brand name for ⅓ the price of Amazon’s starting price! – - What’s the big deal shopping Amazon?
martens about 4 years ago
Amazon’s Antitrust Paradox: Amazon is the titan of twenty-first century commerce. In addition to being a retailer,it is now a marketing platform, a delivery and logistics network, a payment service, a credit lender, an auction house, a major book publisher, a producer of television and films, a fashion designer, a hardware manufacturer, and a leading host of cloud server space. Although Amazon has clocked staggering growth, it generates meager profits, choosing to price below-cost and expand widely instead. Through this strategy, the company has positioned itself at the center of ecommerce and now serves as essential infrastructure for a host of other businesses that depend upon it. Elements of the firm’s structure and conduct pose anticompetitive concerns—yet it has escaped antitrust scrutiny. This Note argues that the current framework in antitrust—specifically its pegging competition to “consumer welfare,” defined as short-term price effects—is unequipped to capture the architecture of market power in the modern economy. We cannot cognize the potential harms to competition posed by Amazon’s dominance if we measure competition primarily through price and output. Specifically, current doctrine underappreciates the risk of predatory pricing and how integration across distinct business lines may prove anticompetitive. These concerns are heightened in the context of online platforms for two reasons. First, the economics of platform markets create incentives for a company to pursue growth over profits, a strategy that investors have rewarded. Under these conditions, predatory pricing becomes highly rational—even as existing doctrine treats it as irrational and therefore implausible. Second, because online platforms serve as critical intermediaries, integrating across business lines positions these platforms to control the essential infrastructure on which their rivals depend. (continued)
Alberta Oil Premium Member about 4 years ago
It’s the American way.. capitalism.. Buy out the competition then dominate the market and charge what you will. Amazon is just one of the many players.. it just.. at the moment.. gets bad press because trump has a snit with them. Walmart.. accused of the same.. is in trumps good books and is making America great.. according to trump.
Ally2005 about 4 years ago
Under the same conditions Trump, being a Bezos wannabe, would sell the water for $200 and $19.95 shipping. Bezos would make huge profits, Trump would fail, file for bankruptcy and blame everyone else. Neither would win a humanitarian of the year award.
Radish the wordsmith about 4 years ago
Bezos makes 100 million a day, tax free.
Flatlander, purveyor of fine covfefe about 4 years ago
ordering on Amazon is an invitation to get stuck with a Prime membership. I spend more time shutting down the next month payment. I don’t buy enough to have Prime an asset. If you want to legislate, make them stop giving a subscription. Besides in Canada Prime TV is crap. I have Crave, Netflix and Britbox
ferddo about 4 years ago
Why do people think that they’ve got to buy from Amazon?