Competition, Cooperation and Regulation

Aldi
Aldi

So today I survived my father. He was 50 years and 118 days old when he died. A few thoughts about our economic situation before and what happened next.

The state changed the laws and prohibited us to bake bread in our old bakery. The ceilings were to low and the fire protection was not good enough. So my parents had to tear down and old storing house next to our main house in order to build a new house for the bakery. They planned a new bakery and stores in the cellar with all required technical conveniences, office and a flat above it.

Unfortunately my father died during the building process. Then the state wanted my mother to engage a senior baker to continue the bakery. We already had two bakers, three shop assistants, a housekeeper and the new house was build with a loan. Additionally she survived cancer and some other relatives died shortly before.

So she did not know what to do. Obviously the other members of the bakers guild already had  renovated  their property and were not able to help her. She went to the city, and was told that a new supermarket chain called Aldi was looking for shops and stores in city centers. Of course the town wanted to strengthen its market position in the region. We were lucky, Aldi finished the house building and offered her a long term rental contract. The former bakery was rented to a butcher, who wanted to open a branch in the city. Of course the bakers guild was not that happy with this development, since the prices of Aldi were much lower than theirs.

Twenty years later Aldi moved away from the city centers and opened shops in the outskirts. Then the venue was rented to a woman who opened a fashion studio. Unfortunately she was not able to survive. Then the age of low price hair dressers was dawning. So she rented the shop to a budget hair dresser. You can imagine that the traditional hairdressers were not that amused, but again they did not give her money.  Instead they did joint advertising campaigns against the disturber, but of course he survived, as my mother did.

Can you imagine that in my oral exam in economics I was asked about competition law in the case of bakeries and I did not even understand the questions. Since I wrote the best written exam in national accounting the professor was so nice to give me a good mark anyway.