3 ms·
When demand outstrips supply by a large margin (and supply cannot be increased) there is no need for collusion for prices to be high, and no incentive to lower
by rndmio 6y ago
When demand outstrips supply by a large margin (and supply cannot be increased) there is no need for collusion for prices to be high, and no incentive to lower your own prices to compete because you can't sell any more of a good you've sold out of.