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Price collusion has been moved into software. Automated systems that recommend pricing for Gas and everything else. We're at the tip of a huge iceberg right now
by coding123 3y ago
Price collusion has been moved into software. Automated systems that recommend pricing for Gas and everything else. We're at the tip of a huge iceberg right now.
Computers have a way to automate collusion and hide it's existence. In every major industry there is a small cottage industry that provides pricing data.
The obvious response someone can reply with is that there needs to be a way to punish non-colluding players, but the reality is, you only need to have the whales involved. The small players can charge less, but realize that if they're only providing 5% of the market (combined), and cannot exceed that, they have no downward pricing pressure.
Combine all that with the fact that the FTC asleep at the wheel to this and monopolies gobbling up all of the competition. Almost all of our food is owned by a handful of companies that own hundreds of brand names.