Price monopoly endless troubles.doc

 PAGE \* MERGEFORMAT 15 Price monopoly endless troubles June 1, Beijing ‘franchise travel abroad travel agencies of the Commonwealth’ (hereinafter referred to as the Commonwealth) in 11 travel company held its 11th regular meeting, and made an unconventional decision: Thailand to take the price per night 8 U.S. dollars as well as the main lines of the ‘minimum protection price’ travel outside the minimum bid was the current price to at least 200-300 yuan, and some lines than in the current market prices increased by 700 yuan to 800 yuan. It is reported that the limit action is mainly aimed at travel in Southeast Asia ‘zero fare’ phenomenon. The cartel earlier this union can not help quite a bit reminiscent of a similar color TV industry, air-conditioning industry, the price of alliance. However, some members of the consortium have repeatedly explained that the limit of this action can not be with the color TV industry in the same breath, color TV industry is for profit, while the limit is from the Commonwealth to consider the interests of consumers, that is the lowest protective price is to protect the consumers, this is a specious pretext. First, price monopoly to a market economy has brought endless troubles Within the framework of a market economy, price is the interests of both supply and demand equilibrium point, in the fully competitive market, prices are in the market only ‘invisible hand’ under the mechanism to achieve optimal allocation of resources, and the survival of the fittest market mechanisms to promote the development of high-class industry. The essence of the Commonwealth of price fixing price of alliance, is the process of China’s tourism market in the reverse operation is a return to the old system and retrogression. Prior to joining WTO, the major challenges of the grim circumstances, tolerate the existence of price alliance the healthy development of China’s tourism industry is tantamount to quenching thirst with poison. Economics,