It is amazing how many online networking groups there are now for business, and there is an online networking group for almost every industry sector and sub-niche.
In fact, if you do a little searching around on the Ning Social Online Network Platform, you will see a social online network for your exact industry group, and perhaps even one in your own area, or region of the country.
With all these online networking groups, there will be more price collusion, even if the participants aren't necessarily attempting to do that.
How do I know this? Well, although I am now retired, I belong to quite a few business type social networking groups, and I see a number of folks online discussing price, services, and the types of products they sell, and what works best.
In doing so newcomers to the industry, as well as those who are entrenched in their local markets, are constantly adjusting their price point to the industry averages - and in a way this is nothing new, industry associations have also been doing these things for decades.
The difference now is anyone can belong to a social online networking site for their small business niche, without paying a lot of money to do it.
Therefore, there is more participation overall on many different networking websites, and the interesting thing is many of these networking websites are linked together to other websites, and the participants are involved in several, each time linking them to more people.
What we have is an ad hoc standardization of pricing in almost every single industry due to the Internet.
In a way this limits competition, promotes collusion, and although it does provide some standardization, which is nice for a consumer, it also can slow down the competitive aspect which we have come to love and respect in a free market system.
Now then, I am not criticizing what's going on, I realize that small business social networking are evolving, so what's happening right now and today may not be of concern.
Also, I realize things could go either way, the price collusion problems could get worse, they might drive down prices, which helps consumers, and more consumers might find out about these groups and learn more about the industry so they don't get ripped off in the future.
After all, information is power.
Nevertheless, from an intellectual standpoint perhaps this is something we should be watching, considering, and perhaps doing something about in the future.
I hope you will please consider this as a thought problem.
In fact, if you do a little searching around on the Ning Social Online Network Platform, you will see a social online network for your exact industry group, and perhaps even one in your own area, or region of the country.
With all these online networking groups, there will be more price collusion, even if the participants aren't necessarily attempting to do that.
How do I know this? Well, although I am now retired, I belong to quite a few business type social networking groups, and I see a number of folks online discussing price, services, and the types of products they sell, and what works best.
In doing so newcomers to the industry, as well as those who are entrenched in their local markets, are constantly adjusting their price point to the industry averages - and in a way this is nothing new, industry associations have also been doing these things for decades.
The difference now is anyone can belong to a social online networking site for their small business niche, without paying a lot of money to do it.
Therefore, there is more participation overall on many different networking websites, and the interesting thing is many of these networking websites are linked together to other websites, and the participants are involved in several, each time linking them to more people.
What we have is an ad hoc standardization of pricing in almost every single industry due to the Internet.
In a way this limits competition, promotes collusion, and although it does provide some standardization, which is nice for a consumer, it also can slow down the competitive aspect which we have come to love and respect in a free market system.
Now then, I am not criticizing what's going on, I realize that small business social networking are evolving, so what's happening right now and today may not be of concern.
Also, I realize things could go either way, the price collusion problems could get worse, they might drive down prices, which helps consumers, and more consumers might find out about these groups and learn more about the industry so they don't get ripped off in the future.
After all, information is power.
Nevertheless, from an intellectual standpoint perhaps this is something we should be watching, considering, and perhaps doing something about in the future.
I hope you will please consider this as a thought problem.
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