It’s basic economics that a monopoly can charge more than firms in a competitive market. In the presence of competition, prices will be closer to cost. For a monopoly, demand still slopes downward as they raise the price, but they can set the price higher.
Collusion allows firms to get somewhat closer to the monopoly price.
I don’t how much this software really does to enable collusion, though? It seems like some landlords might defect if they have too many vacancies?
Collusion allows firms to get somewhat closer to the monopoly price.
I don’t how much this software really does to enable collusion, though? It seems like some landlords might defect if they have too many vacancies?