Price fixing
•
by Plato
Dear Citizens
In the Romanian food market it seems like a price fixing agreement was set up on the 19th of December 2007, day 29 of the new world. All the companies are selling the food at the same price: 7.35 RON.
Who gains from this?
- As the price of food increased, the employees asked for bigger salaries (already today we saw that in some of these companies salaries increased by 100😵
, this brings inflation and a weaker RON compared to other currencies;
- The companies that have low costs and work in a efficient way have the same sales as inefficient companies.
- The companies that produce quality 2 products (quality 2 food brings +2 wellness when consumed) sell the products at the same price as quality 1 products.
You can find a print screen and a call to strike here:
http://www.erepublik.com/article-3373.html
So will Romania gain or loose from this situation? We think we know, what is your opinion?
On another note we were in the news again today in France and Romania. You can go to the blog if you want to check it out: www.erepublik.com/blog
The Erepublik team
Facebook
Twitter
Discord
Comments
This kind of agreement is bad for the food, as it is a basic product. And it's overpriced. This can only lead to collapse or the entering of foreign enterprises. Time will tell...
Well...this whole mess has many reasons. One of the reasons is the 80% tax on the income from export voted by the congress which made it impossible for food companies to sell products on the international markets.
The other main reason is the uncontrolled concurence which led to uncontrolled dumping prices. It's impossible to pay a 10 RON/day salary and sell food for 1 RON/unit. It would mean a mean of 10 productivity for each employee and a 100% daily presence. Highly unlikely.
Sorry...but this kind of system just doesn't work!
hmm, that seems odd - anyone who backed this idea care to explain what you hope to gain from doing this? sounds like a cartel set up by the managers of the food companies to rip off the market. the problem is it's hard to break the cartel because people don't have Gold to start a new company and undercut the cartel. which brings us nicely back to the Gold problem...
I don't know but I do Know that I still get messages about salary raises from Romanian people. Mpney does not make people happy
well, they need the salary rises to afford the goods. all this is doing is creating monster inflation!
the price was set too low compared to the salaries... it` s a transition period for food industry in Romania. It will prove to be useful. It`s just a synchronization problem.
What will happen if companies from other companies will sell their food there cheaper?
Well it means your servant will buy a license to Sweden today and sell at 2. Cheap food for everybody! Cicero
Cartells are forbidden in many countries in the real world and is against most "fair competition"-standards. I just hope they realize their problem when someone decides to go 7.30RON/food.
lol God Emperor Dio has been doing that since the start of his presidency, so why are you reporting on other countries when Pakistan did it way before anyone else?
LOL, 80% export tax? What country discourages foreign expansion?
When the economy collapses, foreign food sources should be able to make their way in if the government wants to survive.
What the Romanians have done cannot work. By making quality 2 food the same price as quality 1 there is now no incentive for anyone to improve their company meaning that their food companies will always be stuck on low quality crap. Investors from other countries will go into Romania and sell high quality food and make a killing
poor romanians they all gona die starving
its insane i think. it will destroying the romania market, i think the owner must have a reason, why the quality 1 sell in the same price with quality 2? Every Owner out there! come on fix the price or ur country country wil be die starving like Dgames said! Gudluck Romanians
Same thing is about to happen in Sweden too.
But here it´s the salary.
and Flashback( a forum that have invaded Sweden the past few days) want a salary for everyone at 2sek, and the food is sold at around 1.5-2sek 😁
LOLOL
that's a funny situation😛
There should be like a "courthouse" of the erepublik to punish those companies, because that's obviously not acceptable, since it's a first use item and without food we can't live!!
It seems to me that if the price is fixed to be the same, yet my product is better than Mr. Smith's, my products will be bought. So, in this case, doesn't the consumer win, all in all? Either way, the consumer pays the same price, so the consumer, if smart enough, will go for the better product. If they want to fix the prices, let them at it.
I'm a food sector businessman and I think this is bad, I play a low price game with the other businessman and this make me sell more food. Concorrence is good to the consumers.
FIRST PAGE!!!!!!! VOAH!!!!!