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0 pointsAunche5y ago0 comments

>if you set up a regulatory system where you're the only one with the registration needed to sell fish

This doesn't happen though. There's nothing stopping you from setting up your own fish whole selling company if you think that is lucrative. Sure there will be regulatory hurdles, but if you can make a case that you can do it for cheaper while still making a profit, you can find an investor to pay for your lawyers.

The fisherman wants to sell all their fish with a price that they know in advanced. However, the packer only wants to the fish that they know that they can sell to supermakets, and doesn't want to buy more than they have to. Without someone assuming the risk of holding a bunch of frozen fish for a long time, the fisherman wouldn't being fishing as much, which means less fish ends up with the customer, and less value being created.

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rrrrrrrrrrrryan5y ago· 1 in thread

> if you set up a regulatory system where you're the only one with the registration needed to sell fish

> This doesn't happen though

This happens all the time.

The point isn't that it's literally impossible to compete, the point is that there's a large barrier to competition that provides no value to anyone other than the entity that created it. Time and money was spent to intentionally make the market less inefficient, so that the newly inefficient market could be exploited thereafter.

Yes, a new entity could then decide to invest time and money to try to jump over the new hurdle, or toward tearing the hurdle down. But all those man-hours and all that money spent on lawyers could've been put toward something else that creates actual value to a wider slice of society.

AuncheOP5y ago

Of course market inefficiencies exist, but their impact is much smaller than what critics of capitalism like to imply. Amazon and fishing operate in a market with plenty of competition. My point is that the value that a fish futures owner holds is real.

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