| New Member | Stop posting on the message boards and stick to grinding out that 50k a year, I'm sure you've got a real noble profession. If you've taken a single economics course you'd understand exactly why it's a monopoly. Your response only epitomizes your lack of entrepreneurial spirit, your much celebrated completion of grade 10 and your completely narrow scope of web and search marketing. Since you’re probably scratching your head and wondering what I’m talking about let me break it down for you.
1. There are only three real search engines, this creates high barriers to entry and lack of competition
2. Lack of competition allows for price fixing (googles black box and Yahoo’s attempt to stop arbitrage are prime examples of this), if there is price fixing there is no free price system. Which means that there is no free market! The external pressure that Yahoo and Google exert on the market place are clearly self serving.
Let me clarify, what “their” customers want, is to sell their widgets for the cheapest possible price. If an arbitrater can get a consumer to do it for $.02 rather than a dollar why should the advertiser be forced to pay the dollar? A sale of a widget is the sale of a widget regardless of how the consumer landed on the web site. The underlying principle of capitalism is that someone is able to exploit that inefficiency until the market corrects itself…not until a monopoly stamps out all competition.
Don’t you find it interesting that crude oil prices are at an all time high but Exxon posted record profits? Why do you think this is? Why do you think Yahoo and Google don’t want arbitrage? I’m really interested to hear what you have to say. Please don’t say something stupid like, “because the arbitrage crowd says its cool”. Take a few minutes and try and come up with something interesting.
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