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Joined: 26 Aug 2005
Posts: 565
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PostPosted: Sun Oct 30, 2005 9:25 pm Post subject: Reply with quote Edit/Delete this post
agman wrote:
Econ101 wrote:
Quote:
Agman:RPA allows for price discrimination in a multitude of sound business practices.
Just post what you are getting at. Obviously from your airline example I can not read your packer mind. Cite the specific example you want to use.
I warn you not to jump to the conclusion of what I know or do not know. You have already been burned on that jumping around on another thread.
Tell us the economic reasoning used in the decision and how it applies to the RPA example used in the Pickett case. You are totally correct in saying that there can be differences in price paid, but price discrimination is based on the premise that the items are equal in value in time and place. Each of those aspects are important in determining whether there was a violation of the law or not.
Bring out your example if you dare.
Your quote in case you have forgotten "Jason, you make the economic argument that I make. When the larger packers play their games they do, they create barriers to entry. There was a real good article in the Wall Street Journal on this same phenomena in the airline industry and it is having some real big ripple effects on our economy."
You cannot even remember the nonsense you post. My "airline" example, which evidently was to complex for you to understand, was in direct response to your usual phony and unsupported anti-business statements regarding barriers to entry which you cited the airline as an example. How many new airlines have started while the large inefficient ones either must change their failed business model or perish. Have you ever heard of Southwest, Jet Blue or Virgin Airlines to name but a few new and successful entrants into a business with high barriers to entry as result of very high capital requirements? You just got that fish hook stuck in your lip again!!
Packers face the same environment-very high capital costs which limits entry and success. Is that a conspiracy or is high capital a prerequisite for success in that business? The last packing company that was started and managed by some academia types, as I expect you are, blew $200+ million before God got the news. I expect they, like you, will say it was a conspiracy overlooking the fact that their business model was more than $400 per head from their actual results. Textbook theory does not cut it in the real world of business-so much for your intelligence and hypotheticals. You are simply too easy. Your lack of real knowledge is totally transparent, you fool no one. BTW, regarding your tapped phone, I have come to believe you tapped it yourself to listen to yourself.
Agman, in the article on the airlines, the point was made that on this last airlines bankruptcy, the bankruptcy actually hurt the overall industry for allowing oversupply in the industry. If you had read the article, instead of trying to bash me over nothing, you would have understood that point in the article.
I don't have an anti-busines bias. Businesses will start and fail. Guarenteed returns are not part of the free markets. Jason was arguing that the packers in Canada needed to be bailed out. My point was that they didn't need that. When these corporations get the handouts they do from taxpayers they create barriers of entry for new entrants. That reduces competition. Companies should be able to stand on their own and actually make money. When they do not, they should not expect a handout from taxpayers. Businesses are organizations that are supposed to make money, not take money.
As far as the Pickett case went, if you can't do the time, don't do the crime. I don't know why judges think that they have to keep Tyson from paying the damages that they inflicted on the market through a slide down the supply curve. Was it, as SH says, that they don't make that much money so they can not have done the damages? What a lousy excuse.
The airline industry has changed and the meat industry needs to change also.
Now, what is your RPA (Robinson-Patman Act) example you wanted to bring up on the Glickman vs. IBP. case? This is the second time you have railed against me and not answered the question. You brought it up, now what is your example from the case? Are we supposed to read your mind?
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