AUTOHOME, Inc Message Board

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Technology Stocks : AUTOHOME, Inc

ATHM 24.84

-0.8%

Nov 11 3:59 PM EST

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To: gpowell who wrote (22735)	5/29/2000 4:14:00 PM
From: ahhaha	Read Replies (1) of 29970

I'm starting to understand what you mean by "oligopoly". Oligopoly has traditionally meant that transition state where fewer and fewer sellers are available for a variety of reasons and this lack of suppliers makes supply tight and therefore prices rise. You don't mean that. You just mean that there are only a few suppliers no less than permitted under Bork. B & S apparently add the qualification that the few collude to some degree for whatever reason and the result is non-competitive. The longer term result is rising prices and rising margins. That isn't consistent with B & S on the NDSP level because the NDSP margins will fall. I can't imagine @Home margins rising due to restrained competition with AOLBB. When completely adjusted for all manner of factors rising margins come from greater human effort. When adjusted for all manner of factors lower prices come from greater human effort. Thus, lower prices are correlated with the larger build in wealth. In light of this it may be necessary to force the NDSPs to be vertical so they will be forced to improve over time. The alternative is eventually the government has to bail out ATHM.

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