What Should We Think About Chain Stores?

Are chain stores good or bad? According to Prof. Art Carden, there are reasons to both like and dislike chain stores. The reasons to like chain stores include their ability to lower prices, increase variety, and reduce uncertainty. However, chain stores also do things to dislike, such as pursuing special government privileges like subsidies and eminent domain.

Essentially, when chain stores respond to the incentives of the market, they create wealth for society. On the other hand, when chains stores respond to the incentives of the political process, they often produce detrimental effects for society.

5 Comments

  1. Matt Wavle

    Once I traveled up north, and wanted a good southern bowl of grits.  The Cracker Barrel came through.

  2. Ryan Boyd

    I agree with the video that chain stores are great from an economic standpoint, but it is when they use their political power that they abuse the system. Chain stores are just one link of our amazingly complex and wonderful economy, but like all things they need to be in moderation. What should moderate them though? I would say market forces.

  3. Thomas Ashcraft

    I definitely love being able to sit down at a Cracker Barrel anywhere in the country and get some good southern food. I grew up on Cracker Barrel, I feel comfortable in Cracker Barrel, and I love their food. On a side note, I love how he threw Ice-T in there "A wise man once said…"

  4. Anonymous

    It is give and take with chain restaurants. but it seems that the gives are what  are remembered most rather than the takes of the convenience of them.

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