As the news of Circuit City filing for bankruptcy begins to wind down, consumers begin to ponder the aftereffects. Best Buy: Cautious optimism for the future is one such article which analyzes possible changes by talking about his past experiences shopping at his local Best Buy which was across the street from a Circuit City. This scenario can be modeled by a trading network with two traders and one buyer. In this network,  it seems that Best Buy and Circuit City were at an equilibrium because both retailers had equal ask prices. The reason for this is that both retailers had a price matching program, which meant they was willing to offer a product at a price not more than the offer from any other retail store. As the writer explains in the article, “it kept both stores’ managers on their toes and more willing to do whatever they could to keep me in the store and ensure that they earned my business.”

Now that Circuit City is gone for a variety of reasons listed
here , consumers are now afraid that Best Buy will monopolize the market as the top competitor in consumer electronics. Other competitors include large chains like Walmart and Costco, but it’s really hard to beat Best Buy’s price match guarantee. The article points out that the only thing preventing Best Buy from monopolizing are internet retailers. Best Buy may have the benefit of being an actual physical store, but online retailers beat Best Buy in terms of pricing. Internet retailers are one of the few stores that Best Buy would not price match and shopping online sometimes means no taxes. With online retailers like Amazon who are able to offer lower ask prices and Best Buy unable to match their prices, there isn’t really an equilibrium anymore. As online shopping becomes more popular, Best Buy may suffer the same fate as Circuit City. Another article that agrees on these points is : Will Best Buy (BBY) have a harder time competing with Circuit City gone?