Is creating monopolies and oligopolies really going to help the economy in the long run? I think that's no good. Markets can't find the true values then.
What do you think?
Besides, here is an example of how i have seen some big companies operating. E.g. One company holding 100 flats. Rent being demanded is 9500/month. They won't negotiate with a customer who is willing to pay 9000/- using reasoning that they have a policy of keeping the same rent for all flats. As a result, the flat stays vacant for 2 months. Revenue lost ? 9000*2 = 18000/-
Even if after 2 months they do manage to find a tenant @9500 it will be 36 months before the additional 500 will help them recover the lost 18000/- !!!!
Just bad business sense or what?
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Quidquid latine dictum sit, altum sonatur.
Is creating monopolies and oligopolies really going to help the economy in the long run? I think that's no good. Markets can't find the true values then.
What do you think?
Besides, here is an example of how i have seen some big companies operating. E.g. One company holding 100 flats. Rent being demanded is 9500/month. They won't negotiate with a customer who is willing to pay 9000/- using reasoning that they have a policy of keeping the same rent for all flats. As a result, the flat stays vacant for 2 months. Revenue lost ? 9000*2 = 18000/-
Even if after 2 months they do manage to find a tenant @9500 it will be 36 months before the additional 500 will help them recover the lost 18000/- !!!!
Just bad business sense or what?
------------------------------------------
Quidquid latine dictum sit, altum sonatur.