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Old 11-28-2017, 04:10 PM
Vorian Atreides's Avatar
Vorian Atreides Vorian Atreides is offline
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Join Date: Apr 2005
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Originally Posted by Colonel Smoothie View Post
Think about it. If you are earning a dollar of profit in any way, it won't last for long. A competitor will simply underbid you. The furthest point they'd be willing to underbid you at is the point of 0% profit, which is the equilibrium price.

I'm okay with you guys saying that profits do exist, but you have to admit then that the market is oligopolistic to a certain extent or that we're in an environment of monopolistic competition and not a competitive market.
You must not have read about insurance regulatory history.

"Underbidding" the competition in an insurance market--especially insurance coverage for structures prone to catastrophic damage--usually results in insolvencies.

And there are usually considerable consequences to the high-level executives of companies that go insolvent that they would generally prefer to avoid.
I find your lack of faith disturbing

Why should I worry about dying? Itís not going to happen in my lifetime!

Freedom of speech is not a license to discourtesy

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