Smart Economists understand how gaining monopoly power means trying to gain some competitive advantage in any market anywhere, so that one can charge more than the other. Here are two examples - the market for local Masai blankets and the market for travel:
Some have difficulty understanding how to apply this concept.
From another blog :
A British tourist visited a local market in Tanzania. He visited a shop next to another that was selling the exact same identical product - a Masai blanket - it even had the same packaging. However he was selling it for 2,000 TSh more.
The British tourist asked him how he expected to sell the item. He explained, “Yes, they are the same product, but we are different businesses”. The British tourist bought the blanket from the other shop.
There are of course even more ambitious projects, such as the Transport for London, Virgin Trains and Boeing.
This from the BBC : inside the Virgin Spaceship
Some have difficulty understanding how to apply this concept.
From another blog :
A British tourist visited a local market in Tanzania. He visited a shop next to another that was selling the exact same identical product - a Masai blanket - it even had the same packaging. However he was selling it for 2,000 TSh more.
The British tourist asked him how he expected to sell the item. He explained, “Yes, they are the same product, but we are different businesses”. The British tourist bought the blanket from the other shop.
There are of course even more ambitious projects, such as the Transport for London, Virgin Trains and Boeing.
This from the BBC : inside the Virgin Spaceship
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