Vaxalon
First Post
kingpaul said:
Actually, I disagree, and I have an actual case point. There's a college bar here in Erie, Antlers, that Gannon U has been wanting to buy for years. Finally, the owners of Antlers put the property up for sale, with the restriction in the selling contract that it remain a bar and never be sold to Gannon. If any future owner failed in these terms, it would revert back to the first owners, or their estate. The property sold.
That's a different issue, and I'll tell you why...
It's not price-fixing.
Price-fixing is an attempt to close out competition. It's an attempt to create higher prices for a product by forbidding all distributors from competing on price. It's NOT consumer-friendly. It's something that companies who have a near monopoly do to make their monopoly profitable. You want Barbie? You have to go to Hasbro. Because of their heavy advertising, little Becky won't accept an imitation.
In this case, the bar, one can argue that this kind of contract ENCOURAGES competition, by keeping more bars in operation. In economic terms, it's consumer-friendly.
In the end, regulations against price-fixing are in place because it's one of the only way consumers can fight against monopolies.