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Politics : Politics for Pros- moderated -- Ignore unavailable to you. Want to Upgrade?

To: i-node who wrote (520672)	11/8/2012 12:22:25 PM
From: ManyMoose	Read Replies (1) \| Respond to of 793838

Question: Suppose I own a McDonald's. Can I ditch the franchise but still buy supplies from McDonald's?

To: i-node who wrote (520672)	11/8/2012 1:37:43 PM
From: TimF	2 Recommendations Respond to of 793838

Since the law will make adding a second store cost prohibitive, it creates a huge uphill battle for chain operations like Chilis or even McDonalds to get off the ground. One more example of how regulation stifles competition. Big entrenched companies know this. They often push for extension of regulation. Partially this is so they can have influence over the result and avoid it being disastrous for them, and partially its for a public relations benefit (at least avoiding bad PR if not always getting good PR); but part of it is because the bigger companies know that the regulation stifles small companies from expanding (or sometimes starting in the first place). It may in direct terms be negative for the big company, but the indirect benefit of making their market less competitive is bigger. And its likely not to be too negative for the big companies in many cases since they often influence over the laws and regulations that affect them.