Comments on: What happened to our supermarkets: negative consequences of errors of scale and financialization https://blog.p2pfoundation.net/what-happened-to-our-supermarkets-negative-consequences-of-errors-of-scale/2012/09/09 Researching, documenting and promoting peer to peer practices Tue, 11 Sep 2012 19:26:09 +0000 hourly 1 https://wordpress.org/?v=5.5.14 By: Dave https://blog.p2pfoundation.net/what-happened-to-our-supermarkets-negative-consequences-of-errors-of-scale/2012/09/09/comment-page-1#comment-493021 Tue, 11 Sep 2012 19:26:09 +0000 http://blog.p2pfoundation.net/?p=26270#comment-493021 This is drivel – random observations that are largely incorrect and don’t tie back to how firms make money.

Has the author ever looked at the income statement of a big box retailer? Profit on selling products is their primary source of profit, not investment or interest income. Products are cheaper at larger chains largely due to economies of scale in manufacturing, distribution, and retailing – i.e., less hours and dollars of labor and other costs per dollar of product sold.

Similarly, the marginal cost of putting one more passenger on a plane or one more guest in a hotel is extremely close to zero if that plane seat or hotel room would otherwise be empty.

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By: Tom Tunguz https://blog.p2pfoundation.net/what-happened-to-our-supermarkets-negative-consequences-of-errors-of-scale/2012/09/09/comment-page-1#comment-493009 Mon, 10 Sep 2012 23:13:45 +0000 http://blog.p2pfoundation.net/?p=26270#comment-493009 Robert Reich has a great book called SuperCapitalism which extols this very principle. It’s the cause for the decline in the middle class and ultimately the increase in CEO compensation.

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By: Sepp Hasslberger https://blog.p2pfoundation.net/what-happened-to-our-supermarkets-negative-consequences-of-errors-of-scale/2012/09/09/comment-page-1#comment-492988 Sun, 09 Sep 2012 12:37:32 +0000 http://blog.p2pfoundation.net/?p=26270#comment-492988 Excellent article and a very astute observation.

This needs to seep out into public consciousness!

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