Is this a monopoly in play?

Frankiestine · Aug 6, 2008

Let say A company, hmmm let called it SMRT operates in a environment where competition is not exactly zero but it is indirect competition with B company, lets called it SBS. Now both companies are already making profits from their operation. Both decides to increase the price of their service or products. Wouldn't this be considered a monopoly?

No where else in the world would a company that is enjoying profit still increases price on its product. That would only means that it is operating in a monopoly without any competition.

Truly "UNIQUELY SINGAPORE".

zhihau · Aug 6, 2008

Frankiestine said:
Let say A company, hmmm let called it SMRT operates in a environment where competition is not exactly zero but it is indirect competition with B company, lets called it SBS. Now both companies are already making profits from their operation. Both decides to increase the price of their service or products. Wouldn't this be considered a monopoly?

No where else in the world would a company that is enjoying profit still increases price on its product. That would only means that it is operating in a monopoly without any competition.

Truly "UNIQUELY SINGAPORE".

bro Frankie,

what do you think about the petrol prices all across this lil' island? a lil' fishy don't you think? :eek:

Whats4 · Aug 6, 2008

Frankiestine said:
Let say A company, hmmm let called it SMRT operates in a environment where competition is not exactly zero but it is indirect competition with B company, lets called it SBS. Now both companies are already making profits from their operation. Both decides to increase the price of their service or products. Wouldn't this be considered a monopoly?

No where else in the world would a company that is enjoying profit still increases price on its product. That would only means that it is operating in a monopoly without any competition.

Truly "UNIQUELY SINGAPORE".

u got to see who is the boss. same boss no different lah

Frankiestine · Aug 6, 2008

zhihau said:
bro Frankie,

what do you think about the petrol prices all across this lil' island? a lil' fishy don't you think?

well technically, according to that toothless barking dog of a organization called CASE they don't call it monopoly or a cartel because there is no prior consultation before they increase petrol prices and they do not increase it at the same time...so like that to them no price fixing..ai nee ma eh sai...

zhihau · Aug 6, 2008

i think i should invest in a nice bicycle...

splintuh · Aug 6, 2008

Oligopoly : State of limited competition, in a market shared by limited producers / sellers

The problem here is that there is no direct competition for the consumer dollar. The routes are divvied up by LTA/PTC (i dunno who exactly), and assigned to the bus company. Since routes are not duplicated, we consumers don't have to make a choice b/t the 2.

This is unlike telecomms, where we actually have a choice b/t the 3 providers.

SammyHulk · Aug 6, 2008

zhihau said:
i think i should invest in a nice bicycle...

Great idea. maybe a motorized 1? :biggrin:

wodemama · Aug 6, 2008

if one increase and earn more profit, the other one also want ma. more $$$ who dun like? anyways they are monopoly in their own rights.. different company bus have different route.

mentos1 · Aug 6, 2008

In the first place, compaines which are not owned by the government, their only aim will to make as much profit as possible. So it is not right for us to say that they are in the wrong of increasing their prices. Of course, it will harm us to certain extent but if you take a look at what SBS is doing. I think their effort of upgrading the buses do warrent for some increment.

Overall, the cost of inflation is in place and to try to make up to their staffs, they too have to increase their pays and how to do that without having to increase their income? :smile:

baidu · Aug 6, 2008

Aiya both will say that they are LISTED COMPANY mah, so their shareholder cums before us lah. :mad:

zhihau · Aug 6, 2008

SammyHulk said:
Great idea. maybe a motorized 1?

you know where got sell motorized bicycles? i think it will really come in handy these days... :smile:

leetahbar · Aug 7, 2008

Frankiestine said:
Let say A company, hmmm let called it SMRT operates in a environment where competition is not exactly zero but it is indirect competition with B company, lets called it SBS. Now both companies are already making profits from their operation. Both decides to increase the price of their service or products. Wouldn't this be considered a monopoly?

No where else in the world would a company that is enjoying profit still increases price on its product. That would only means that it is operating in a monopoly without any competition.

Truly "UNIQUELY SINGAPORE".

if u take smrt and sbstransit as a couple of sheperds, then sgp commuters are the sheep to be herded by them.

did u realsie that sbs is smrt's accomplice? they hv since scrapped many bus services which were more convenient to commuters. those bus routes clashed with smrt which means we were deprived of our alternative and more convenient choice.

as for the sbs new routes, some are really ridiculous. for example like going fr pt A to pt B, there is a strange long winding merry go round in between. if pt A & B were to be reached in say, 4 bus stops, the merry go round would increase more stops wasting commuters' time and charging unfairly a higher fare. :mad:

leetahbar · Aug 7, 2008

zhihau said:
you know where got sell motorized bicycles? i think it will really come in handy these days...

good alternatives but gabramen illeegalise it. their reason: endanger the user and other motorists.

the real reason: sure adversely affect public transport's profit margin.

zhihau · Aug 7, 2008

leetahbar said:
good alternatives but gabramen illeegalise it. their reason: endanger the user and other motorists.

the real reason: sure adversely affect public transport's profit margin.

a greener vehicle and the Government made it illegal? you sure it is illegal now?

gerlover · Aug 7, 2008

IMHO, I think splintuh is correct. Mono-poly implies a single player dominating the entire industry, usually found in utilities such as electricity providers. In the "hypothetical" transport example, there are two players. In an oligopoly, when the market "leader" makes a move, the other typically follows.

Another example are the petrol giants such as Exxon-Mobil, Shell, etc. When one raises prices, the others usually follow. I would like to see what happens when one lowers prices, would the others follow :biggrin:

?

Just my two cents.

Frankiestine · Aug 7, 2008

splintuh said:
Oligopoly : State of limited competition, in a market shared by limited producers / sellers

I wouldn't even term is as oligopoly. There is never any competition to begin with, neither service providers has duplication routes that competes with each other. They each has their own sector and routes.

I think a law should be amended such that transport service providers which are considered essential services should not be allowed to increase their fares wantonly. As they are always citing the same bull of operational cost increase, fine then a base should be set for profitability before they are allowed any increase in fares.

Frankiestine · Aug 7, 2008

SammyHulk said:
Great idea. maybe a motorized 1?

motorized one, i thought those bastard from LTA banned them from the roads even though the speed very slow..

Frankiestine · Aug 7, 2008

baidu said:
Aiya both will say that they are LISTED COMPANY mah, so their shareholder cums before us lah.

then services like them which caters for the masses should not be privatized as they are providing an essential service..

Frankiestine · Aug 7, 2008

leetahsar said:
you sure or not? dun anyhow hantum lah ... ;9(

i saw many times people ride the bicycle got motor one leh .... you always like to bluff ;9(

dun get caught cos it is against the law..

Frankiestine · Aug 7, 2008

gerlover said:
Another example are the petrol giants such as Exxon-Mobil, Shell, etc. When one raises prices, the others usually follow. I would like to see what happens when one lowers prices, would the others follow ?
Just my two cents.

Sinkee drivers are very sensitive to pump prices but the problem as highlighted by a forum writer was, it is simply not possible that every single petrol giants here has the same cost which relates to the same selling price..ie same number of workers taking the same pay etc. So how is it that they are all selling at the same price?

As previously suggested, perhaps it is time to start a mass boycott of one petrol brands for a week then move on to the next so as to force them to drop their price unilaterally. Considering that they are able to extend up to 10% and in some cases 15% discount off the pump price. Prices are still not at a realistic margin.

Is this a monopoly in play?

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