| ▲ | bryanlarsen an hour ago | |||||||
Identical prices are often a sign of intense competition. Every gas station on a corner has the same price because it's a highly competitive market not because of collusion. The prices of the much more lucrative chocolate bars inside the gas stations are less likely to be identical. | ||||||||
| ▲ | dcrazy an hour ago | parent | next [-] | |||||||
Yes, the gas station example is directly cited in the article I linked to. It’s legal for a gas station owner, with knowledge and consideration of a competitor’s price, to reduce their price to the same or just below. What is illegal is for nominally-competing gas station owners in an area to conspire to keep their prices within a range of each other’s, even without explicit agreement. | ||||||||
| ▲ | lightedman 42 minutes ago | parent | prev [-] | |||||||
"Every gas station on a corner has the same price because it's a highly competitive market not because of collusion." Huh? I can go to most any gas station-occupied intersection and you will always find two that match and one (usually a Persian-owned Chevron) which is consistently a dollar or more higher per gallon across all grades of fuel. | ||||||||
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