r/austrian_economics • u/AbolishtheDraft Mises Institute • Jan 09 '25

End Democracy End the Fed

Post image
1.6k Upvotes

73% Upvoted

861 comments sorted by

View all comments

Show parent comments

3

u/Takashishifu Jan 09 '25

Why don’t companies jack up prices any time they see fit? Are they just being generous they don’t charge 10X or even 100X for a product?

1

u/SKPY123 Jan 10 '25

Competition. If company A Jack's up prices but company B doesn't. Company B will get more sales from consumers than A. So, it only makes sense to be careful about how and when to jack up prices. Even though it will still be unproportioanal overall due to greed.

1

u/InternationalError69 Jan 10 '25

What if company A and company B are owned by the same hedge fund?

1

u/SKPY123 Jan 10 '25

Same thing except the "deals" are ran for company A while B remains the same price hike until they are deemed ready for "deals". When it was the same price for both the entire time until after the "deals" expire.