What do you do when costs fall? Well, nothing. That is a wonderful focal point for a cartel to stick with. No reason to lower prices until somebody else does.
2. Price rigidity has many reasons and manifests itself in manners beyond Rockets & Feathers. -->
2. Price rigidity has many reasons and manifests itself in manners beyond Rockets & Feathers. -->
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Nonetheless I'd like to use this time to study how market power and tacit collusion interact with an inflationary environment.
THE END - thank you for your patience with my non-knowledge on how to make a thread on this platform