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Technology Stocks : AUTOHOME, Inc
ATHM 23.14+0.6%Jan 23 9:30 AM EST
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To: Robert Scott who wrote (2439)7/12/1998 12:35:00 PM
From: Terrapin  Read Replies (2) of 29970
 
Or sticking with the 2 pizza parlors:

What if they collude to fix the prices of their pizzas (assuming the consumer does not have a third choice). In this way competition is avoided and the consumer suffers. This is the false market because it creates a shadow monopoly over the consumer. Big Oil is known for these practices.

While I find these discussions a wonderful addition to this thread I am not sure how it actually relates to the merger of T and TCOMA. The government has indicated that the merger will face a favorable review and will likely go forward. The RBOCs are pursuing redress for their grievances which is their Constitutional right and I'm sure receives the blessings of their shareholder's. They will pursue every legal avenue to protect their monopoly and it may add time to the implementation of the merger but that is the price we pay for our systems of justice and government and what I believe to be the most competitive markets in the world (my opinion and I welcome correction). This competition has been fostered by an anti-trust department that is probably the only part of the government that still looks out for the consumer (OK, I may be stretching it a bit here :) ).

I understand ahhaha's point that competition is inherently unfair because it is the goal of every company to become a monopoly in its market; not to peacefully coexist with its competitors. Therefore a company will seek out every advantage and exploit it to their benefit. However, the definition of the word unfair does not apply to that scenario. If the first pizza parlor develops a tastier sauce and gains market share - that is fair. If the second pizza parlor goes across the street and throws a trash can through their window - that is unfair. The second pizza parlor has prevented the consumer from equal access to a competitor's product thus creating a temporary monopoly. The only thing this merger does is create competition and so, in the end, it will prevail.
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