I don't entirely disagree with you, but: > and it has nothing to do with labor demand. If not having an employee costs you $30/hour in revenue-- your desire t

I don't entirely disagree with you, but: > and it has nothing to do with labor demand. If not having an employee costs you $30/hour in revenue-- your desire to avoid a bidding war won't prevent you from making an offer at $22/hr if it's necessary to fill the slot. It has everything to do with labor demand (and supply). Collusion (formal or informal) between loosely coupled, adversarial entities breaks down under pressure.