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Un-Fair Competition

March 12, 2005 by Neville

The Houston Rodeo is the largest rodeo anywhere in the world. It draws huge crowds who stick around for a livestock show, shopping, concerts, a carnival and lots of greasy foods.

One thing I noticed when I went today was the long lines at EVERY food concession stand, despite the prices:

  • Pickle – $2.75
  • Soft Drink – $3.00
  • Funnel Cake – $5.00
  • Chicken Leg – $7.00
  • Regular Beer – $6.00

These prices may look familiar if you ever go to football games or amusement parks. The rodeo regulates the prices for these items, not allowing them to be sold for under a certain price. This price cooperation between vendors forces patrons to pay preposterous prices.

Thankfully free competition in the real world prevents prices from getting out of control! From the Rodeo’s standpoint they had a good deal going. They had a complete monopoly on the food market, huge crowds, lots of hungry kids and parents with money to spend.

Lesson for Business Minded People: Fixed competition can be used to your advantage.

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