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If all the sellers used software to enforce a minimum price (which is what’s happening here), then yes that would be collusion. And things like that have absolu
by denverllc 3y ago
If all the sellers used software to enforce a minimum price (which is what’s happening here), then yes that would be collusion. And things like that have absolutely happened in finance (see: LIBOR, bid ask spreads in the 90s, etc.).
- s1artibartfast 3y agoSo you agree that if there is no requirement to enforce price, there is no collusion? It seems like half the people in this thread are arguing that simply knowing the market price constitutes collusion.
- niam 3y agoWhere else do we require charges of collusion to be substantiated by hard-requirements?
- s1artibartfast 3y agoEverywhere? In general the legal system requires all charges to be substantiated by evidence. In general logical or rational thought requires allegations to be well founded. In contrast, where else do we simply let charges and outcomes be dictated by sentiment or allegations opposed to evidence?
- niam 3y agoThe presumption there being that the only possible evidence for collusion is the existence of hard-requirements levied on each party. Unless you're misreading my reply to mean the absence of hard-evidence.
- s1artibartfast 3y agothe thing is that the crime of collusion is defined not by behavior, but by agreement. It is 100% legal to offer the same price as your competitors, even if an entire industry is doing it. it only becomes illegal if parties make an explicit agreement. Hard-requirements would demonstrate an explicit agreement.
- pphysch 3y agoSeems like the other half are not aware that RealPage requires users to accept some % of centrally-decided prices. It's blatant collusion. RealPage is cartel software, full stop.
- s1artibartfast 3y agoHaving read the complaint, that isnt the case. Real page doesnt require users to accept any % of price. There is a recommendation and no requirement to stick to it. However, that isn't the only service RealPage offers. They also offer a service where they set the price and list units for the owners. The first service is not collusion, but the second one is collusion. It is the difference between a service that reports gas station prices and a recommendation to owners to make a decision VS a service that controls the sign and sets the price for them.
- arrosenberg 3y agoIf there is no requirement, but every landlord using the service takes their advice to maintain a price floor, it is still collusion.
- s1artibartfast 3y agoNo it is not. The classic example is law firm salary. Every biglaw firm in the US pays the same salary and publishes them. This has been found not be collusion because there is no agreement or requirement they stick to the price. Every once in a while, one law firm will defect and raise salary, and every other law firm will update theirs within a week to the new rate.
- arrosenberg 3y agoThat's different - they are choosing to raise their prices to attract talent. In this case landlords colluded to extract rent. You can always pay more for labor, no one is going to stop you because it's not exploitative.
- s1artibartfast 3y agono, it is the same. They are choosing to align prices so that they do not have to get in a bidding war for employees. It is legal because there is no formal agreement and they are just price matching to a published standard. In theroy, anyone can depart from the standard at any time, but 99% of the time, they dont. It is the same with the landords. In theory, they can charge whatever they want. It is 100% legal to extract rent. It is only illegal to make agreements with other parties to price fix.
- arrosenberg 3y ago> It is only illegal to make agreements with other parties to price fix. Conveniently, all of the landlords participating in the conspiracy had some kind of service agreement with RealPage/YieldStar, which appears to equate to an agreement to fix prices.