[bcassedy]

We're talking economics, there is very little evidence in general. The entire field is essentially observations and storytelling.

The evidence is profits increasing faster than inflation and examples of C-suites saying straight up that this environment is letting them raise prices.

The story is that when inflation is low, consumers are more intolerant of price hikes. They'll shop around and try out your competitors. Evidence to support this sentiment analysis is the myriad ways companies sneakily "hike" prices. Shrinkflation for example. When prices seem like they are going up on everything, what's the point of shopping around?

[throwawaylinux]

There is good evidence that it's not greed though, because people didn't suddenly start to become greedy, and nobody _needs_ any "cover" to raise prices, prices get raised all the time based on profit maximization.

[bcassedy]

Of course people are always greedy. The "cover" provided by an inflationary environment just boils down to people are less price elastic when the environment primes them to expect price hikes so those that want to raise prices for greed (profit maximization) can do so to a greater degree than they could in other market conditions. I don't know why you're being so dense, it's really straightforward psychology and there's a fair bit of data to support this.