> as the data shows the big retailers clearly cooperating on price fixing.
The data does not clearly show that at all. It shows the expected result of inflation in a competitive market.
When Company A decides that it's time to raise prices on Product B due to inflation (maybe their wholesale price went up), Company C, being under the same market pressures to raise prices, also raises their price but, because they still want to be competitive, they don't raise them beyond Company A. Reacting to the market isn't collusion, anti-competitive or anti-consumer. If you just reverse the direction the prices are going, it seems a lot less sinister and it's still the exact same inputs/outputs.
The whole thread is made of points like that, especially the "asymmetrical information warfare" bit. He's scraping the websites for this data, right? Obviously that information is available at home. Moreover, the situation has actually dramatically improved because of the internet. You can now put together a cart on two different websites and go to the cheaper store if you'd like. Try doing that twenty years ago. I used to have to read the weekly ad to know these things, now I can just look online.
The _only_ point that's being made is that Austrian prices are a bit higher than other nations and, for some reason, he thinks it's because the companies are conspiring in some way and not that it's, for some reason, more expensive for those companies to operate in Austria. That seems like the obvious solution to me since they appear to have a competitive market with a few major players.
The data does not clearly show that at all. It shows the expected result of inflation in a competitive market.
When Company A decides that it's time to raise prices on Product B due to inflation (maybe their wholesale price went up), Company C, being under the same market pressures to raise prices, also raises their price but, because they still want to be competitive, they don't raise them beyond Company A. Reacting to the market isn't collusion, anti-competitive or anti-consumer. If you just reverse the direction the prices are going, it seems a lot less sinister and it's still the exact same inputs/outputs.
The whole thread is made of points like that, especially the "asymmetrical information warfare" bit. He's scraping the websites for this data, right? Obviously that information is available at home. Moreover, the situation has actually dramatically improved because of the internet. You can now put together a cart on two different websites and go to the cheaper store if you'd like. Try doing that twenty years ago. I used to have to read the weekly ad to know these things, now I can just look online.
The _only_ point that's being made is that Austrian prices are a bit higher than other nations and, for some reason, he thinks it's because the companies are conspiring in some way and not that it's, for some reason, more expensive for those companies to operate in Austria. That seems like the obvious solution to me since they appear to have a competitive market with a few major players.