Rooted in Reason: Nurturing the Seeds of Liberty


Monopoly: Game Over by grassroothawaii
December 25, 2010, 5:10 pm
Filed under: Economy | Tags: , ,

By Frances Nuar

Did you ever play Monopoly growing up? (Or possibly last week?) I remember it as the game that never ended, if I started a game of monopoly, good luck, I was going to be playing for a long longgggg time. And if I wasn’t the one who got the “monopoly”… well whoever owned all the hotels basically owned me. Not fun.

Well there’s another monopoly game over here in Hawaii. Young Brothers Ltd. finally has some competition coming in from Pasha Hawaii Transport Lines. After holding a regulated monopoly for decades, Young Brothers isn’t handling the competition well. They fought hard to keep Pasha out, but lost the battle. (Let’s not forget how hard they lobbied against the super-ferry–which is no longer with us.) So their first move was to announce a 24% price hike. That’s pretty huge considering in the last ten years, the highest hike was 13.5%. I thought competition was supposed to cut prices? Did they miss the memo?

That’s the whole, beautiful theory of competition. When you have competition, companies have to actually compete for your business. They can’t just give you shoddy, poor service or results and exorbitant prices and say “We’re the only ones. It’s us or no one.” No, they actually have to excel, go above and beyond, make you, the customer, happy, because otherwise you are going to go to the company that does. Competition is a wonderful thing. It’s what Adam Smith glorifies as bringing about the Wealth of Nations. Time for Young Brothers to embrace competition and prove themselves to be a leader in the field–or fall behind to whoever does.

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1 Comment so far
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Do you know why YB is raising there rates? because they been giving there local farmers like me a 30% discount rate.Now when another company comes in and wants a piece of the pie and only take the islands that make money and YB still have to serve those smaller island and loose money,they have to make it up somehow.

Comment by chris




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