10 ms·
What you see here is literally the definition of cartel price fixing. OPEC engages in price fixing. It is unstable, as you say, but nobody would say "OPEC is a
by dangerlibrary 4y ago
What you see here is literally the definition of cartel price fixing.
OPEC engages in price fixing. It is unstable, as you say, but nobody would say "OPEC is a perfect example of the free market functioning exactly as it should, with no price fixing or market manipulation going on."
- sib 4y agoOPEC technically engages in supply fixing - the market then sets the price driven by the intersection of the demand curve and the (fixed) supply. If OPEC reduced supply and users of oil reduced demand by more than that same percentage, prices would likely drop.
- Aunche 4y agoThe biggest beneficiary of cartels are competitors that are outside the cartel. For example, OPEC enabled fracking to be profitable. To hurt fracking, they loosened their price fixing. If RealPage were price fixing rather than simply facilitating price discovery, landlords would have no incentive pay for the service.
- dangerlibrary 4y ago> The biggest beneficiary of cartels are competitors that are outside the cartel. This is just... obviously wrong. If this were true, nobody would ever join a cartel, since membership is voluntary. All antitrust legislation and enforcement would be rendered entirely moot, because nobody would ever collude to fix prices.