“There are too many liquor stores in Lebanon, just at the rate that more stores are opening. I never really felt that way before,” Andrea Ross, the owner of Cheers Wine and Liquor, said. “We know multiple liquor store owners in Lebanon [TN] that are great people, great business owners, but in order for us to continue to be able to provide good pricing and all the things that we offer, we have to be able to sustain the business.”For anyone who has not read Chapter 6, what the incumbent liquor store owner means by "good pricing" is high pricing. To the residents of Lebanon, good pricing is low pricing.
- By limiting competition from entrants, the city council create incentives for incumbents to support their reelection campaigns.
- Does the city council have enough information to make good decisions about the number of liquor stores, and the incentive [see above] to do so?
HT: MH
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