this post was submitted on 31 Oct 2024
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Erm, how's this different than a vendor looking over at the other vendor's prices and setting their own to match? That wouldn't be price fixing. To be clear I am not advocating for the market, rather highlighting this flaw isn't captured by the standard price fixing idea yet it has the same effect. And there isn't a market solution to it, rather as you suggest, intervention is needed.
That's precisely my point. This is price fixing, very obviously so, but it's almost impossible to actually prevent because at some point as long as people in an industry can share information and have an incentive not to undercut each other, behaviour that is indistinguishable from price fixing - even if it could not legally be defined as such - will inevitably emerge. When I say this is price fixing, that's not a legal judgement, just an observation of what the behaviour clearly is, regardless of how it would be legally defined. If it looks like a duck, etc. I'm going to call it price fixing because that is the ultimate effect that it has.
Hence my point that ultimately the only solution to this is aggressive rent controls.