Engineer's Finance

Please read Part I and Part II before reading further.

Vodafone and Bharati Airtel are two big brands in India. Before Vodafone entering into India, it bought 10% share in Airtel. From Wikipedia, “On 28 October 2005, the Company announced the acquisition of a 10 per cent stake in India’s Bharti Televentures, which operates the largest mobile phone network in India under the brand name AirTel. On 22 December 2005, the Company announced the completion of the acquisition of the 10% stake in Bharti Televentures of India.” Some days back when I had accidentally typed airtel.com it was redirected to Vodafone page. (Isn’t it funny?). Now you can check that such a page does not exist and I tried to get the domain registrar’s name and it was not fruitful. Continue reading →

Please read Part I before you proceed.

Consider there is a dealer X, he wants to sell the goods to other dealers only. In order that to happen, he sells goods to customer at an inflated rate which is not close to what other dealers are providing. In such a scenario, the customer does not like to go to that particular shop to buy the goods. But whereas when the dealers ask him for goods he keeps his margin and sells the goods. This way, the dealer X has a shop and he is making money and he is making sure that others in the community are also making money. In such a co-operative environment, price fixing is bound to happen. Continue reading →

It is interesting to know that the competitors join hands to ensure they fool the customers. In any market, customer is considered to be the king. But there can be many places where in he is just fooled. Isn’t it interesting? I was wondering whether such things do happen in real or is it only theory. Now I am convinced that there is price fixing in the market and the customers are fooled at large. I don’t know whether it is a good practice or a bad practice to control the demand and supply chain but I know in long run it might not help the competitors. Continue reading →