npub1jflcdvljl0n8hlz27798d0044rxwkqz69gapvcctt4p4gdt4kasqjgfmdd (npub1jfl…fmdd)
The issue with undercutting has to do with niche “capture”. Basically the barrier to entry to be able to compete is unreasonably high due to control over the whole niche.
Consider the historic example of the gas companies. If a new gas company opened up the mega-corp would just undercut costs within 50 miles of the new station to rates so low it would operate at a loss, they would also hike the price at all their other stations by a penny sot hey make up costs but dont really effect the cost much elsewhere. Then when the new startup goes out of business they restore the costs in the area to normal.
It effectively would make it completely impossible for small businesses to compete and enter the space. The only way to compete is by forming another megecorp right fromt he getgo, which of course no one could afford to bankroll that out of pocket.
npub1p34kn5su0fzjmsqx7wegqftnd34xr7as808udkxyltcl9zw6jrqqajwdy6 (npub1p34…wdy6) npub1ukcz3c3ek9ugnmrj37cjm2q9gsaqss5j9dqwpqmx0tgkzudsseqqcp40jn (npub1ukc…40jn)
🎓 Dr. Freemo :jpf: 🇳🇱 /
npub1zt…enwdy
2023-08-06 18:37:54
in reply to nevent1q…uyd5
Author Public Key
npub1ztdf3gaxd768ks6jdvdjg853ma3jhl2qtrw9xeyn3hyn9l5nzyvq5enwdyPublished at
2023-08-06 18:37:54Event JSON
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