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Plenty of industries raised prices with very little effect on volume, however, it was not truly "independent", companies can easily coordinate by sending signal
by listenallyall 3y ago
Plenty of industries raised prices with very little effect on volume, however, it was not truly "independent", companies can easily coordinate by sending signals via forecasts, press releases, news leaks, etc. If P&G and Unilever both decide to raise the price of soap and toothpaste, are you going to shower or brush less? Meanwhile demand exploded on discretionary spending like travel, restaurants and recreation despite price increases.
- HighFreqAsuka 3y ago> however, it was not truly "independent", Of course I don't mean to imply they operate in a vacuum. They can obviously see competitors raising their prices. I just mean to say they don't get into a room and actively decide on a price.
- azinman2 3y agoExcept price fixing does occur. I’m not saying everything is the result of it, but they absolutely do.