Profit seeking
Submitted by Aguanomics Blog
Jack Ceadel over at Global Water Intelligence wonders what is going on:
Mostly we talk about market consolidation, but over the past decade, the reverse has been happening in the desalination industry. Growth has sucked more and more players into the industry, to the extent that the market leaders have actually been losing market share. It is such an unusual phenomenon that I am not sure there is a word for it. I call it market proliferation.
No Jack, it’s called profit seeking, as in… businesses with extraordinary profits attract entrants, and these entrants drive down profits for incumbents.
Read Schumpter 
Bottom Line: Easy money attracts attention, and the fear-driven rise in demand for desal has got a lot of corporate attention.
