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Uniform prices in an industry indicates low competition?

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Uniformity of prices within an industry indicates a lack of competition within the market. Do you agree? Justify your view with reasons and examples.

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Solution Summary

Discussion disagrees with comment and gives examples where this comment does not fit the facts.

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I disagree. When prices are closely aligned, I believe it means that there is strong competition and no one dares to raise their prices for fear of losing market share! Think about Blockbuster and Netflix' DVD-by-mail services. They charge nearly the ...

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Carol Sargent, PhD
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  • BSc, University of Virginia
  • MSc, University of Virginia
  • PhD, Georgia State University
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