Groceries Law

Nermal · 20-03-2006 06:36PM

jrey1981 wrote:

I think you will find in economics it is called an oligopoly, where the aim is market dominance and maximum profits.

we already have perfectly enforcable rules prohibiting anticompetitive behaviour. the groceries order was not one of them and repealing it doesn't magically make them ineffective.

gilroyb · 20-03-2006 06:39PM

jrey1981 wrote:

When a few firms dominate, then we revert to the lack of competition and they can set their prices at very similar levels for a high proportion of given items.

I think you will find in economics it is called an oligopoly, where the aim is market dominance and maximum profits.

A few firms already dominate.

In all market structures the aim is market dominance and maximum profits, not just in oligopoly.

rubadub · 20-03-2006 07:25PM

Originally Posted by rubadub
Why? why would tescos & dunnes just suddenly drop their profits?

Nermal wrote:

in anticipation of future increases when they take business from the other retailers. it's hardly brain surgery.
.

gilroyb wrote:

They aren't dropping their profits. They make a certain profit by selling a certain amount at the higher price. When they drop their prices they sell more. Everyone benifits.

I take both your points. My point is that I do not think I will be saving €100 a month due to this law.

Drop the prices so they get more customers and hence make the same profit, correct, nothing to stop them doing this at the moment, thats why I do not expect big drops. They are allegedly stopped from below cost selling but can still sell far lower to pull more in if they want, but they do not. They can easily fiddle the law with clever invoicing. How can they currently sell stuff for 10cent that is close to its use-by date?
Has anybody a link to the law that was repealed?

Groceries Law

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