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If instead the 2 gas stations were both selling at $4.45 and looked around and decided not to lower their prices to $4.15 even though they could, it's equivalen
by jonas21 2y ago
If instead the 2 gas stations were both selling at $4.45 and looked around and decided not to lower their prices to $4.15 even though they could, it's equivalent.
- lukev 2y agoOr one of them could lower to 4.35 and take all the business. Which is normally what would happen without collusion.
- BurningFrog 2y agoI don't have a source for this, so take it as you wish, but as I remember what I read, duopolies can be quite stable. Three party cartels can go either way. But with 4 or more participants, someone will inevitably betray the others out of greed.
- lukev 2y agoHence the other aspects of antitrust law. Albeit not enforced well of late.