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Collusion in the sense they all operate from the same playbook. It isn't any more 'collusion' than DuckDuckGo and Google 'collude'. They operate from the same
by opendais 12y ago
Collusion in the sense they all operate from the same playbook.
It isn't any more 'collusion' than DuckDuckGo and Google 'collude'. They operate from the same playbook [e.g. I make money from ads providing search content] and optimize revenues based on their goals. DuckDuckGo differentiates on privacy, Google differentiates on other things.
If you have a duopoly in most markets [e.g. AT&T + Comcast], now that AT&T has bit the bullet, why wouldn't you join them and offer 20% more data in your plan and call it a day? You can extract most of the same value and fence them in by offering more.
It is the same reason in game theory, you have gas stations near each other generally.
http://www.forbes.com/sites/sap/2012/05/21/why-gas-stations-are-so-close-to-each-other/ http://www.forbes.com/sites/sap/2012/05/21/why-gas-stations-...
Each of you sit near each other and divide the market in half.