I genuinely see the point and I think the argumentation that he can afford it is also sound. But the flaw is that Bezos will just hand off the cost to consumers. This won’t affect his income or wealth at all. We need measures that target anti competitive behaviors and monopoly building as well as taxing people that have way too much.
That’s the thing though, the price will not go to the consumer. People use Amazon for the convenience and the fact that it is often cheaper than going to the store yourself.
If suddenly it’s more expensive than the store it really incentives going to the store. And that is precisely why prices will remain the same.
Competition is so rarely a thing though. The barriers to entry are significant enough that if you actually go through them all… why wouldn’t you just price shop and then charge about the same as your “competitors”? You don’t need to talk to effectively collude.
That’s entirely dependant on the economy. If the average consumer is doing well then what you are saying does happen.
But if they are not doing well financially, like right now, then stores begin to compete more. I’m starting to see this locally myself in grocery prices. Some things are actually coming down slightly, at least for the moment. I expect with the increasing price of diesel prices will skyrocket again, but maybe we’ll get lucky and companies will have to eat the cost this time. Everyone is so broke right now they may not be able to pass the cost on
Of course he’ll hand the cost off to consumers. As if his wedding yacht ring, like everything else he does, wasn’t directly financed primarily by his consumer-facing business!
Read up on prime and why that only works to bind customers as long as you are the biggest in the market. Also the price increase still hits all the online shops, so whatever Amazon’s competitive advantage is still in place.
I genuinely see the point and I think the argumentation that he can afford it is also sound. But the flaw is that Bezos will just hand off the cost to consumers. This won’t affect his income or wealth at all. We need measures that target anti competitive behaviors and monopoly building as well as taxing people that have way too much.
That’s the thing though, the price will not go to the consumer. People use Amazon for the convenience and the fact that it is often cheaper than going to the store yourself.
If suddenly it’s more expensive than the store it really incentives going to the store. And that is precisely why prices will remain the same.
You might have a point there. Might also just increase the price of prime just a touch.
That’s a good point. If they raise the cost of prime by even $1 nationwide they make up the difference and hide the cost
https://www.tutor2u.net/business/blog/a-prime-example-of-price-elasticity-of-demand?srsltid=AfmBOoq9X51eIjuOiKc78coCEaH19kegR1xgRTdad9ATxClnAL3qW2dY
Too big to fail just also happens to be too big to care.
Competition is good for the consumer and keeps prices low automatically.
In my opinion, too big to fail means too big to risk it. Nationalize Amazon.
Remember what we did to Ma Bell?
Well I admit, phones were free then. Repairs were free then.
Too big to fail == too big to live, at least it would be in a sane world.
Competition is so rarely a thing though. The barriers to entry are significant enough that if you actually go through them all… why wouldn’t you just price shop and then charge about the same as your “competitors”? You don’t need to talk to effectively collude.
That’s entirely dependant on the economy. If the average consumer is doing well then what you are saying does happen.
But if they are not doing well financially, like right now, then stores begin to compete more. I’m starting to see this locally myself in grocery prices. Some things are actually coming down slightly, at least for the moment. I expect with the increasing price of diesel prices will skyrocket again, but maybe we’ll get lucky and companies will have to eat the cost this time. Everyone is so broke right now they may not be able to pass the cost on
So…read the room.
Of course he’ll hand the cost off to consumers. As if his wedding yacht ring, like everything else he does, wasn’t directly financed primarily by his consumer-facing business!
Retail isn’t as easy to maintain a monopoly as most industries. The moment Amazon gets more expensive than the next guy, the whole thing falls apart.
Read up on prime and why that only works to bind customers as long as you are the biggest in the market. Also the price increase still hits all the online shops, so whatever Amazon’s competitive advantage is still in place.
No, it hits the online shops that underpay their staff.
Most shops don’t have the benefit of vertically integrated logistics nationwide. Amazon literally doesn’t pay what the owners of dhl and FedEx earn.