Supertopics:
“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.
Documents:
| web | Liz Pancotti and Lindsay Owens | Groundwork Collaborative | 2024-01-17 |
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