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Using Inflation As an Excuse to Raise Prices
Implicit Price Fixing via Prisoner's Dilemma Cooperation

half of recent US inflation is from high corporate profits      web

authorTom Perkins
publicationThe Guardian

“This is a form of implicit collusion,” she said. “Firms do not even need to talk to one another to know that a cost shock is a great time to raise prices. But when costs fall, price-setting firms do not have any incentive to decrease prices.”

If no firms launch a price war, Weber added, then companies “hold the line” on prices and widen margins.

webLiz Pancotti and Lindsay OwensGroundwork Collaborative2024-01-17

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