[Geisterde]

By the time the lawsuit against standard oil had concluded, they had lost market share, because price fixing doesnt work in real life, as more than a few industrialists have had to learn the hard way. Rents and mortgages are too high, but you are looking in the wrong place thinking housing costs are high due to price fixing.

[BoiledCabbage]

> price fixing doesnt work in real life

Yeah you're gonna need some pretty strong support to make a claim like that - and not just an anecdote from the internet. Do you have any new proof upending long solidified economics?

[fireflash38]

Do you have some papers to back up the claims that price fixing doesn't work?

[Geisterde]

Sure, I would recommend you start with "basic economics", 5th edition, by thomas sowell.

[blactuary]

I would recommend going beyond Econ 101, as well as observing the real world and reams of empirical evidence. Housing is not a perfectly competitive market for widgets with an abundance of sellers where everyone has perfect information and there are no transaction costs. "(illegal behavior X) could never happen because markets" is freshman dorm at UChicago thinking

[ethbr1]

Are you speaking in the long term?

Because it certainly works over decades-term.

Standard still had 70% market share when it was charged, and 64% by the time it was broken up.

Over the ~40 years it existed, it was incredibly profitable.

[Geisterde]

I submit that the long term issues we are having in the united states, are in fact the result of short term solutions. Also, standard oil controlled more like 90% of the market, so in that context they had lost more like 25% by the time the trial concluded.

[ethbr1]

64% is still an incredible pricing and profitability position. Most firms would kill to be in such a situation!

Apple has, what, 20% smartphone market share?

And look at the margins they're able to run. Granted, boosted by platform lock-in.

[Geisterde]

Except, at 64% its not really fixing prices, is it?

[batch12]

I am not finding the phrase price fixing anywhere in that book. Am I holding it wrong?

[Geisterde]

Its a book on basic economic reasoning, price signals, competition, those things are covered from a principled basis, sorry if it doesnt ctrl+f to tell you how irrational the idea of price fixing is.

[jrflowers]

You make an interesting point. While the concept is never introduced in the book, the sum total of the information of the book is that price fixing doesn’t work.

How do I square that with the lesson that I learned from the Bible? While price fixing is not mentioned in it it is pretty clear that it says that price fixing works

[Geisterde]

Well, I wouldnt belittle you for getting your economic education, the bible, Qur'an and others have discussed some economic matters; though, it may be advisable to consult one of the best economic textbooks regarding economic matters.