I see you got as far as supply and demand in your economics course before you zoned out. Competition specifically 3 competitors has been shown to apply sufficient pressure to stop price gouging. Airlines profit margins are at 8% which indicates sufficient completion.
And free market capitalism also supports competition - if there’s a company that can do it for less, there will be, because people will spend less if they can.
How long have you been alive? If you’ve been an adult for ten or more years and haven’t noticed the degradation in quality of services, I don’t know what to tell you.
If people could pay double, things would cost double. Quality likely wouldn’t change.
Source for this hypothesis?
It’s called Free Market Capitalism. If the market can bear double the cost, the prices will rise to meet the level the market can bear.
I see you got as far as supply and demand in your economics course before you zoned out. Competition specifically 3 competitors has been shown to apply sufficient pressure to stop price gouging. Airlines profit margins are at 8% which indicates sufficient completion.
Too bad the regulations to support competition and disband oligarchies is so pathetically weak.
Incidentally, why is it that every gas station in town can fix their prices together? Isn’t price fixing supposed to be illegal?
There is not sufficient regulation to support the hypothesis of competition.
8% profit margin? That’s… Absolutely abysmal. How the heck do they stay afloat?
And free market capitalism also supports competition - if there’s a company that can do it for less, there will be, because people will spend less if they can.
It works both ways mate
Every streaming service.
That’s a super young market by airline standards, still settling in. Not comparable
How long have you been alive? If you’ve been an adult for ten or more years and haven’t noticed the degradation in quality of services, I don’t know what to tell you.