the bull is back

Jordan Hayes jmhayes at j-o-r-d-a-n.com
Sun Apr 22 10:48:52 PDT 2001



> why would, say Enron, deliberately shut down electricity
> generators in California since that only benefits their competition?

This is far too complex of a question to be answered fully here, but imagine some math that looks like this: if by lowering supply 10% you can increase your margins on the remaining 90% of your production from 20% to 200%, why worry what your "competition" is doing?

In a supply-starved market, there's no such thing as competition.

/jordan



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