Earlier quoted context omitted.
> if sale below M.A.P. drops the bottom out of a market and kills an industry, the product can disappear from common production and the consumer doesn't benefit in the long run Is there an example of this happening anywhere in recent history? I ask because it seems absurd to me that there is an industry so fragile that retailers taking a bit less profit would lead to sudden, total collapse. (And doubly absurd this mi…
This exact scenario happened in Hawaii, a small regional market for local (inter-island) flights. There were 2 airlines (Hawaiian and Aloha) competing on price and service, but it was essentially a duopoly with moderate and almost identical prices. Then both started expanding their routes to the mainland US, got overextended when the next downturn hit and declared bankruptcy one after the other (they kept flying at t…
The claim was "kills an industry", but from what you say, the industry's still going. And you say the critical factor was "kept them away from the good gates", which is exactly the kind of thing that is solved with careful regulation, not deregulation.