The tale of two petrol stations.

[McDuck]

The market works fine when it's allowed to.

You know what?

I have no idea why you believe this.
Or how the belief first nested in your mind.

I guess I should not assume.
Bit rude really.
May I ask you some questions, (to see where I've made an error)?


I guess I need to understand the definitions first.

1: When you say " works", what do you mean by that?
2: What is the size of your group? ( does it work for you?, or all workers?, All governments?, all New Zealanders?,?

Possibly all the people on the planet? All followers of Christianity, ((or Witchcraft for that matter))?
All the living things on the planet? or all the people who have been part of the previous British Empire?...

Maybe it's just everyone who can keep energy flowing to America,
or the ticket clipping system of the international financial system as it churns ever more quickly?

If you can just tell me the size of your set, and the objective, then effectiveness of process will be reviewable.

Just who is it you speak for?

Of course, you may be running on blind mantra, not thinking, just following.
In that case, no need to explain.
Blind belief in fictitious forces have kept huge civilizations in order before.

[Don't believe the Hype]

Blind belief in fictitious forces have kept huge civilizations in order before.

and still working very well today.

[Bob Kane]

Thank you so much.
As you were.

I guess I'm dismissed then.

[Learning]

Going back to the petrol stations for a moment, perhaps the original small-town station was taking advantage of their localized monopoly and over charging their customers. The large fuel Co. saw an opportunity to do right by the people and introduce a little competition. Then once it had the monopoly it's money hungry shareholders demanded higher dividends from their investment.

There, it's the shareholders fault.

[McDuck]

Going back to the petrol stations for a moment, perhaps the original small-town station was taking advantage of their localized monopoly and over charging their customers. The large fuel Co. saw an opportunity to do right by the people and introduce a little competition. Then once it had the monopoly it's money hungry shareholders demanded higher dividends from their investment.

There, it's the shareholders fault.

Some correct, some not so much.

You are absolutely incorrect on the first part.

Because the old store was part of the community, social forces kept it honest.
The storekeeper had to walk down the main street and look at his customers every day.
His children played with theirs.
He was part of the town. He was them. This is one of the main advantages of local ownership and control.
Great feedback mechanism.

On the second part, you are correct.

J.D. Rockefeller , the father of Standard Oil, and all petrol stations, was a deeply religious man.
When he first saw an oil wick burning in the darkness, he saw it as God's tool to improve the lives of all mankind.
To bring light to the darkness.
Edison's new "electric light" forced him to join with Ford and use the oil for locomotion rather than illumination.
He may have unwittingly done a deal with the devil at that point.
Not only is he rolling in his grave now, but they call him "Spinner" in the afterlife. Ha.

On the third part, I think you have been deliberately thrown a distraction.
It's doubtful that the average shareholder makes operational decisions about what they have shares in.
They are passengers, not drivers, to use an automotive metaphor.

It does beg the question, what group or groups do?

[Keys]

They are passengers, not drivers, to use an automotive metaphor.

Like in a taxi. They tell the driver where to be at the end of the ride. IE Maximum profit.

[Learning]

You are absolutely incorrect on the first part.

Because the old store was part of the community, social forces kept it honest.
The storekeeper had to walk down the main street and look at his customers every day.
His children played with theirs.
He was part of the town. He was them. This is one of the main advantages of local ownership and control.
Great feedback mechanism.

So no community store ever uses it's monopoly to make an extra buck?

No one (sensible) opens up in direct competition with Joe across the road unless they think they can do it better, more efficiently, but most of all make a sustainable profit. Therefore Joe is either taking advantage of his monopoly or should be doing things better, more efficiently.

Skinny Vs 2degrees - 2degrees enters market to challenge the big boys (Spark/Vodophone) monopoly. Big boy, Spark, introduces Skinny to undercut 2degrees in an attempt to sink 2degrees and regain the big boys monopoly. Spark subsidizes Skinny and gives it access to its network. Spark not worried about losing customers to Skinny as they know that once 2degrees folds they can envelope Skinny back into the Spark brand and pricing. Despite Spark's assault, 2degrees holds on. Consumers win. Support the little fella.

[McDuck]

Like in a taxi. They tell the driver where to be at the end of the ride. IE Maximum profit.

I was thinking it was more like being abducted and thrown in the back of a prison type van, with blacked out windows.

But we'll go with Taxi, to keep you out of panic mode.

So, lets look at it then.

You want to buy some shares in a big company, so you can tell the driver where to go.

How will you do it?

Right now.

What are the actual practical steps Mr or Mrs Keys will take?

Walk me through your process.

Teach me how you will direct the thing.

What destination will you choose?
How will you make sure the rout is best?
How will you even know what way you are going?
Lets say it's an unfamiliar city, most punters couldn't recognise the hidden business landscape if you drew it in front of them.

[McDuck]

So no community store ever uses it's monopoly to make an extra buck?

No one (sensible) opens up in direct competition with Joe across the road unless they think they can do it better, more efficiently, ...

....

Sorry, I answered on a first come first served basis.
Your response is equally valuable.

On your first point.
I do travel a lot.
I can't say I've found too many small town places with wonky prices.
There was one second hand shop half way down the north island with prices almost double what you would expect.
It was either a tourist trap or the people were deluded, the shop is probably closed now.

Usually I find small places are selling things too cheaply.
When I point this out, they just say that the locals won't come back if they put the prices up.

There are only three petrol stations in Auckland that are price scalping.
I just steer around them.

There is one dairy that is substituting low quality product but charging what the high quality product would cost.
Steer around.

There are two food places that are under pricing.
I recommend them to everyone.

There is one place that makes an exceptional product and charges a higher price.
I treat myself on occasion.

Adam Smith's invisible hand seems to live in my DNA.

On your second point.
Many New New Zealanders, open up businesses with the goal of merger survival.
Utilising family members as workers.
Their reward is not dollars, but escape.