In the short term it creates competition and lower priced products.
In the long term, Amazon undercuts suppliers who have to exit the market. That reduces competition and allows Amazon to charge more.
In the long term, Amazon undercuts suppliers who have to exit the market. That reduces competition and allows Amazon to charge more.
that never happens, unless there's a regulation in place that prevents new sellers to get into the market as quickly as they can. When a price for the product begins to rise, it attracts new sellers, as now there's a wider price range to position your competing product.
You say it as if that was a bad thing. More competition is good for the consumer, bad for the oligopolists.
If you're hungry, a soda is "great for the consumer". For 15 minutes, it alleviates that feeling. Does it follow that everyone should consume only soda?