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It’s basic economics that a monopoly can charge more than firms in a competitive market. In the presence of competition, prices will be closer to cost. For a mo
by skybrian 2y ago
It’s basic economics that a monopoly can charge more than firms in a competitive market. In the presence of competition, prices will be closer to cost. For a monopoly, demand still slopes downward as they raise the price, but they can set the price higher.
Collusion allows firms to get somewhat closer to the monopoly price.
I don’t how much this software really does to enable collusion, though? It seems like some landlords might defect if they have too many vacancies?
- FesterCluck 2y agoIt gives the property management insight into rates charged for similarly sized and accommodated properties within their area. It starts as a means to compete in a market where rates aren't posted on the walls. Very quickly as the software becomes industry standard the dynamic reverses, and multi-property owners use it as a form of data-washing, knowing their competitors use the same software, as a means of price fixing without "speaking" to one another. This part of RealPage's offerings is a commercial price fixing collusion tool, plain and simple. - Disclosure: I formerly wrote software for and was employed by RealPage, though not on this specific product.