Ain\’t competition great?

Price-conscious customers deserted Pound World in Poole, Dorset when they realised that the same products were available 1p cheaper on the other side of the street.

The discount shop did a brisk trade when it started business in June but sales fell by 70 per cent after 99p Stores opened last month. Now bosses have decided that they cannot compete, and the store shut down on Saturday.

Strictly for economics geeks though…..while it\’s obvious that neither the supply nor demand curves are continuous, rather they are discrete, out in the real world it still seems to be close enough to the former to still be a reasonable working hypothesis.

3 thoughts on “Ain\’t competition great?”

  1. But that means that Richie is wrong doesn’t it? And we know that can’t be true, so….. this newspaper report is a fabrication?

  2. Wouldn’t they have been better off becoming to 98p World in response?

    Okay, the competition might then have changed to being 97p World, and so on ad infinitum, but if you’re going to go bankrupt anyway it was worth a try.

  3. Having shopped in both, the 99p store is a lot bigger an so has a better range of stuff. I think it highly unlikely that the penny difference was the main cause.

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