3 ms·
This article doesn't really explain why a set of competitors in a given industry would agree to collude and keep prices high. Sure, I agree that Amazon or other
by epups 3y ago
This article doesn't really explain why a set of competitors in a given industry would agree to collude and keep prices high. Sure, I agree that Amazon or other very large companies may decide to increase their margins, because they are a quasi-monopoly. But why would a company that has 5% market share raise prices when they learn all their competitors have done so? Why wouldn't they keep prices at bay and compete for a larger market share?
Interest rates were low, money supply was high, supply chains were broken and we had an inflation spike throughout the world. Now the situation is reversed and prices are falling again. I think greed is a constant variable here, and one that does not properly explain why we see this pattern at all. Are companies less greedy this year? Have we punished their collusion attempts?