A very good question! I'd add though that companies don't have to be "ethical and slightly less greedy" to compete on price. Competing on price is a natural wa

A very good question! I'd add though that companies don't have to be "ethical and slightly less greedy" to compete on price. Competing on price is a natural way to gain market share. Nobody would say that Bezo expressed ethics and less greed when he said "Your margin is my opportunity" Companies should charge the real equilibrium price of a product. It's an important signal to lower or increase supply. However, they should not create a coordinated scarcity or otherwise artificially force a higher price than the equilibrium price. This can only happen through (illegal!) cartels or too much market power (which the government is supposed to prevent). As usual ee cannot ask for better people but need a system that makes the wrong people do the right thing.