[DMCForum] Oligopolistic Competition

["Martin Gutkowski" <webmaster@xxxxxxxxxxxxxx>]

In all this discussion on vendors "getting together", consider the 
economic argument.

Even if you have never studied economics (I took it at A-level - which 
is the exams you take at 18 that get you into university over here), you 
probably know the terms "cartel" and "collusion" and that they are BAD. 
You may also know the term "monopoly" which is one supplier controlling 
the market - and with complete control on the PRICE. In genuine 
monopolies on necessity goods, government control is usually exercised.

Collusion results in a number of vendors acting as a monopoly - they can 
be considered the same thing. BAD.

What we have in the DeLorean community is a small number of important 
vendors. This is known as Oligopolistic competition where a small number 
of suppliers control the majority of the market. And anyone thinking of 
studying economics would do well to cite it as an example - you will 
certainly be writing an essay on it at some point!

My point: The fact that these vendors charge largely the same price and 
compete against each other in this small market is a GOOD thing for us 
all. If one supplier starts producing a part more cheaply, other 
suppliers MUST drop their prices too, or lose the vast majority of their 
sales, because there are no alternatives. All this is classic behaviour 
by suppliers in an oligopoly and believe me, far better than the 
alternative.

Check out "oligopolistic competition" on Google and you'll surely turn 
some info up (but be warned, Economics is 90% boring, but it's great 
having done it to know for a fact all the nonsense arguments politicians 
come up with - but I digress)

Martin
Economics A-Level, Grade A.





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