Reply #47: That might be true for smaller cost items but not luxury items.

[LostInAnomie]

Luxury items have a vested interest in keeping their prices artificially inflated. If they truly competed for the lowest price 54" TV's could cost about 5 bucks each.

Non-luxury items tend to have an inelastic price range because their are other competitors who can cheaply make competing items.

Big ticket items like a big screen TV have an elastic price range because people who are actually willing to fork out the money are willing to pay more for the prestige of owning one. There is no necessity to owning one. Also the price of actually producing one is far to prohibitive for almost any upstart business.

You also have to figure in informal agreements between competing producers.