Originally Posted by mott555
It's a scary day when governments start thinking they decide how much companies charge for their products. That is not how a free market works.
Originally Posted by mott555
They charge that much because people are willing to pay it. That's free market. If it was a problem, people would quit buying and companies would be forced to drop prices to make sales.
Government regulations rarely simplify or make anything better. For example, in the U.S. gas stations are highly regulated on fuel prices. As a result, gas stations can't legally make more than a few cents per gallon profit, meaning there is very little profit in selling fuel. Most got around it by also being convenience stores and trying to get people to come inside and pay $1.50 on a 32-oz pop that costs maybe 10 cents (no one complains about price gouging there!), but due to regulation several gas stations in my area actually quit selling fuel because of the hassle and only do groceries and such. One gas station actually had to totally shut down because they couldn't even survive on that.
Assuming the government has your best interest in mind is as big a mistake as assuming for-profit companies have your best interest in mind.
Just because people pay for it doesn't mean that such sort of business model is right. The fact of the matter is that when an industry is that much expensive than its counter part in the other side of the world, there needs to be an explanation...and offer/demand clearly ain't, because licenses to sell software are, at least here, hard to come by, which means that you will have very few players...but they will be very big.
So, the GVT needs to make sure that everybody is playing fair. If everybody has high prices it means that they are all price-fixing (and thus, eliminating competition...which is anti-capitalism), and thus screwing the system.
Thats why markets need to be regulated, because if they aren't the big players get away with everything the small ones have. History has been proven this point to be totally correct. There is a very funny slogan "too big to fail"...
Originally Posted by AgentHydra
By definition a free market has no government regulation. In a truly free market, in the case of price fixing, an enterprising third party would step in to provide the same product at a much lower price, undercutting all the other companies. A truly free market effectively self-regulates prices, although it presupposes that buyers are educated and will not buy something if its too expensive, which is not always the case.
Sounds like self-regulation is already at work.
Truly free markets don't exist. Right now, markets are totally screwed up, since small business go to hell and nobody cares, but when the big ones do the gvt. step in and bails them out. Its not fair-play whatsoever, and its even worse when you see sinking companies get rescued only to have a ton of money give to its directors (who are the ones who sinked the company in the first play). I'd change those huge "compensations" they get when they ruin their companies...for a good rope and a tall tree so that at least we could have some entertainment.
Lets be honest here, the markets work for those who are already powerful. Too much regulation is bad, but so is not having regulation at all. In Spain the software market is SO expensive you wouldn't believe...and thus why many of us buy nothing inside, and get everything from the UK (amazon, play.com, you name it). Reasons? Every single game sold in Spain has not more than 2 distributors...which means that the chance that somebody new steps in and starts selling the same products is 0 and, thus, the market is just screwed up...Edited by prava - 5/1/12 at 8:16am