Australian Lefty on Politics, Governance, Science and Info Management

Frenemies: Enemies with benefits

Posted by Dave Bath on 2008-08-09

We’ve all heard of "friends with benefits" … now The Economist uses the term "frenemies" to describe companies that hate each other such as the two Big Apple papers, the Post and the Daily News but are getting into bed together.

And the common enemy?  The economic downturn so unavoidable with speculative capitalism.

Parcel-delivery companies fret they may soon be carrying fewer packages." Faced with an ailing American economy, two such firms, DHL and UPS, are planning to collaborate in the express-delivery market there.

How do anti-competition commissioners deal with this sort of thing?

Is this a cartel – like the famous case about boxes and cartons?  Is it market-concentration by another name?  I cannot decide.

But … if the significant players in an essential market need to merge for the market to survive, then perhaps it’s time to nationalize and get the benefits of needing a zero advertising and marketing budget!  Of course, there would still be competition if people could "vote with their feet" and change citizenship whenever they wanted to… that would need a massive change to tariffs on people (i.e. immigration policies).  That’s my evil chuckle you’re hearing now.

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One Response to “Frenemies: Enemies with benefits”

  1. […] A hideous word I thought. But there’s an even uglier word still for the same phenomenon: frenemies. addthis_url = […]

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