Just found how price coordination is forced upon players even if they are not wittingly colluding

in #economy5 years ago

For example, consider the gasoline market.
Suppose some gasoline stations networks hike their prices, and one player does not.
The renters of real estate for gasoline stations become aware of this, try to capitalize on it, and hike their rent prices too.
A competitive, non-collusive player is pressed by the rise in rent to hike his prices too.

The rent is only one ingredient in the cost of business to gas station operators, but the example applies for other costs of gas station operation and can be generalized for businesses other than gas stations.

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