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You ignored the key detail: Who set the price for the Kellog’s corn-flakes?


Walmart? I mean they're on Walmart's shelves. I'm pretty sure Walmart sets the price for everything that's on its shelves.

I mean, Walmart could just choose not to sell Kellogg's Corn Flakes at all. If that was more profitable, I'm pretty sure they'd do that.

They sell their own brand at a lower price point for price-sensitive customers, they sell the "premium" brand at a higher price for customers who buy on the basis of the name etc.


Yeah. Key difference. If the kellogs flakes don't sell at a higher price then Wallmart loses out. It's on Wallmarts balance sheet. If Amazon doesn't sell the brand they have a contract with and now compete with they don't lose out. It's not on their balance sheet. They don't buy that inventory, spend on that shelfspace, etc

Additionally I believe Amazon was pricefixing in cooperation with other retailers.




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