If You Only Knew; The "sausage-making" of Business Pricing

Really?

Other than Kellogg, General Mills, and Quaker Oaks, who has market share in cereals?
Private labels have grown (supplied mostly by the three majors) but in reality, cereals, like grocery prices overall, have increased at a rate as fast or faster than education or medical care (which is where the justification came from for Obama Care). So the major cereal guys play "follow the leader" or find other ways to manipulate pricing, and here we are.
The food manufacturing industry has so many subsidies and tax breaks, market share regulation, even crop licenses that drive up costs, it's no wonder that we import more and more food every year, even from China!(and lots of other places)!
So, monopoly exists (through market share pricing and allocation, NIMBY regulations and more), just not the way that you think.

In relation to the auto industry( as in education), it is "design to minimums."
Minimum standards, rather than the best.
What's that you say? Mercedes(German) BMW (German) , Porsche (German), Lexus (Japanese-Toyota), Acura (Japanese-Honda) Jaguar (English (now Ford sub)), Bentley (English), Rolls-Royce (English), Lamborghini and Ferrari (Italian), Lincoln (Ford), Cadillac (GM).
See any pattern there?
What is really going on is that GM, Ford and Chrysler are set up as Mass Market auto manufacturers, the original American Big 3, while the quality(by some standards) end of the market is taken over by foreign manufacturers. Do you think that Honda and Toyota laugh all the way to the bank with the profits they make from the Big 3's inability to design and compete. I do.
The only monopoly they have is on stupidity, lack of management skill, and intestinal fortitude to fight the fights that must be fought to make their products competitive.
Anyone who thinks the government bailouts of GM, loans to Ford and Chrysler subsidies are going to stop the trend of market share loss is not thinking correctly.
The foreign guys have graduated from eating our lunch, to dinner, and breakfast is next.
The cure? Determined, long term competitiveness through market share pricing for a better-not the same-quality product.
It may be too late.
Honda, Toyota and others have earned enough market share and unit volume to support the design focus that may keep them ahead of the American manufacturers.
Without subsidies, and all other things being even, the American auto industry has only a 25% chance of survival in the next decade.
I speculate there may at least two of three, be owned by foreigners shortly.
I'd further speculate that China is already foaming about the chance to make a U.S. investment, but can't because of the politics, and because opportunities for Chinese "Sovereign" funds (earned by exporting primarily to U.S.) are abundant in Africa, South America, Australia, the Far East, without labor politics controlling.
So, yes Virginia, there is a Santa Claus for manufacturers and retailers in the form of uninformed consumer shopping habits,but mainly in the lack of transparency in information, self-absorbed management practices, market share de-facto monopolies, and more.
I think the growth of Internet information-sharing, whistle-blowing type sites, consumer-supported shopping information sites like Angie's list will help.
But what is really needed is a way to provide consumers with ALL the information about product and service pricing that is needed; from raw material costs to labor costs, to royalty and other information, and how to get it, from the ground up.
That way consumers and business will know just how much of their raw material costs comes from crop subsidies, tax subsidies, and everything that goes into the price you pay.That way also means the ultimate in comparison shopping and competitive pricing from businesses that want more customers and market share.
The Internet will greatly open up the marketplace IF, and only if, pricing information becomes truly transparent for all to evaluate.