This is the resolution of the investigation mentioned in this year old thread. I figured you'd like to know the followup.
The five stores mentioned based in the spanish capital Madrid, had a meeting to fix their public prices of Magic 2011 booster boxes. The CNC (which translates as "National Comission for Competence") recently fined them different amounts totaling around 7000€.
There end the facts.
There are second hand comments from an inside source that suggest the meeting was indeed to fix prices, but to lower them, not to jack them up.
That is still illegal, however I really question it. Why would you need to meet to lower prices? Just lower them by yourself. The need to conspire arises when you want to (artificially) up prices, because otherwise you just risk sending a chunk of your clients to the now cheaper competence.
So I find this particular rumor either false or kind of dumb of them stores :tongue:.
Conspiring to lower prices could be profitable given the demand elasticity of magic boosters. They could have met to agree to lower prices across the board to attract more customers in general without engaging in an endless price war with one store slashing prices after another.
Conspiring to lower prices could be profitable given the demand elasticity of magic boosters. They could have met to agree to lower prices across the board to attract more customers in general without engaging in an endless price war with one store slashing prices after another.
This, but only if their prices were exactly the same across the board, with no incentives whatsoever for going to store X over store Y.
Honestly, I'm kind of baffled by this announcement, since the entire concept of price fixing is prone to fail anyways. How any stores could agree upon the concept without secretly crossing their fingers behind their back is puzzling. Any time I've personally witnessed an instance of this, the authorities were usually unnecessary because the companies ended up going to a price war anyways.
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Thanks, Heroes of The Planes! You guys are great!
Actual Truth:
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Anyone who disagrees with "Jack from NC" is an idiot."-The Dead Weatherman
Conspiring to lower prices could be profitable given the demand elasticity of magic boosters. They could have met to agree to lower prices across the board to attract more customers in general without engaging in an endless price war with one store slashing prices after another.
That makes some sense, yeah. Specially if you can afford the cut by virtue being a big store in the local market (which at least two of those are.)
@DrewM: Then dennounce that to WoTC... the fines are well deserved.
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http://www.eleconomista.es/empresas-finanzas/noticias/4352943/10/12/Multa-a-cinco-distribuidores-de-cartas-Magic-por-fijar-precios.html
This is the resolution of the investigation mentioned in this year old thread. I figured you'd like to know the followup.
The five stores mentioned based in the spanish capital Madrid, had a meeting to fix their public prices of Magic 2011 booster boxes. The CNC (which translates as "National Comission for Competence") recently fined them different amounts totaling around 7000€.
There end the facts.
There are second hand comments from an inside source that suggest the meeting was indeed to fix prices, but to lower them, not to jack them up.
That is still illegal, however I really question it. Why would you need to meet to lower prices? Just lower them by yourself. The need to conspire arises when you want to (artificially) up prices, because otherwise you just risk sending a chunk of your clients to the now cheaper competence.
So I find this particular rumor either false or kind of dumb of them stores :tongue:.
Modern: Jund Legacy: RUG Delver EDH: Captain Sisay
This, but only if their prices were exactly the same across the board, with no incentives whatsoever for going to store X over store Y.
Honestly, I'm kind of baffled by this announcement, since the entire concept of price fixing is prone to fail anyways. How any stores could agree upon the concept without secretly crossing their fingers behind their back is puzzling. Any time I've personally witnessed an instance of this, the authorities were usually unnecessary because the companies ended up going to a price war anyways.
Thanks, Heroes of The Planes! You guys are great!
Actual Truth:
@DrewM: Then dennounce that to WoTC... the fines are well deserved.