how does price fixing work, can’t anyone charge whatever they want for a product?
In: 82
So even if they come to an agreement to overcharge for a product, somebody will eventually break the agreement. Because by charging a little less they gain market share. Whoever is 2nd or 3rd place would not be content with #1 raking in more money merely because they all refuse to lower prices. Furthermore, often a new player will enter the market (because they realize they can undercut their competition) and that will break the cartel.
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