Where these exist (most states) you'll have a hard time opening a new facility whose purpose to charge less than the incumbents. (In theory they'd have to charge more to make up for the business you take away so you'll be raising prices.)
Thanks for pointing that out. CONs are a fascinating rabbit hole of government regulation. They try to lower prices by doing exactly the opposite of the actions that usually lower prices. Only a regulator could think that restricting competition would force prices down.
Also consider car dealerships where there is all sorts of special regulation, and even prevention of manufacturers selling direct to the public. (See litigation against Tesla for more details.)
Heck in California (I don't know about other states) the sales tax is paid based on the purchaser address, not the address where the sale takes place like for other goods.
Or how foreigners aren't allowed to own more than 50% of an airline.
For a land of free business, there is an awful lot of protectionism going on.
Comments
Who is stopping anyone from charging less?
http://en.wikipedia.org/wiki/Certificate_of_need
http://www.ncsl.org/issues-research/health/con-certificate-o...
Where these exist (most states) you'll have a hard time opening a new facility whose purpose to charge less than the incumbents. (In theory they'd have to charge more to make up for the business you take away so you'll be raising prices.)
Thanks for pointing that out. CONs are a fascinating rabbit hole of government regulation. They try to lower prices by doing exactly the opposite of the actions that usually lower prices. Only a regulator could think that restricting competition would force prices down.
Also consider car dealerships where there is all sorts of special regulation, and even prevention of manufacturers selling direct to the public. (See litigation against Tesla for more details.)
Heck in California (I don't know about other states) the sales tax is paid based on the purchaser address, not the address where the sale takes place like for other goods.
Or how foreigners aren't allowed to own more than 50% of an airline.
For a land of free business, there is an awful lot of protectionism going on.