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by dauertewigkeit 1091 days ago
Because people expect that in a functioning competitive market, simpily raising prices won't work because your competitors would out bid you.
1 comments

That really isn't how it works. Most real-world competition by far happens in a context of product differentiation where suppliers are only imperfect substitutes for each other's products. So you can raise prices and not be "outbid" in such a way anytime soon. Your market share would only suffer gradually over time if you kept your prices higher than the market.