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0 pointsObi_Juan_Kenobi9y ago0 comments

The thing about the lightbulb collusion is that it's exceptional for being one of the only examples of such collusion that's verified.

I don't doubt it exists in some cases, but if it were as ubiquitous as many say, I'd suspect to find evidence of other conspiracies. Many other industries also lack a centralized organization (one ostensibly for standardization) to facilitate such a conspiracy. Overall I just find the argument very weak, especially in the face of normal market forces and cost-competition being sufficient to explain much of the observed changes.

I do agree that appliances likely represent a real decline in durability over the past couple decades.

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threepipeproblm9y ago

This is incorrect... there are many examples, the light bulb is just the best documented, partly because of it's historical timing.

Another poster mentioned the DRAM case, this is one of a fairly good number of examples of collusion. When you are talking about a type of behavior that people will generally go to good lengths to keep under wraps, a better conclusion would be that the known cases are a fraction of the actual cases.

If we had something closer to perfect competition there would a lot less of this... but we don't. Many of the cases where antitrust action has been deemed necessary by governments were IMO caused by government interventions in the first place.

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