Hacker News new | past | comments | ask | show | jobs | submit login

> Price fixing is illegal in the US but does not seem to be enforced

Those companies are too powerful. There have been many investigations, but you never hear anything back.




It's also that the insurance and medical care markets don't work properly as markets because of a whole host of factors, eg who has the time or knowledge to comparison shop drugs (if there's even multiple drugs that will treat your condition!) and even for the few people that do have the knowledge insurance disguises the true cost for most people. Combine that with the difficulty of becoming a drug manufacturer and the fact that there's only a handful making each drug we don't even have to have coordinated price fixing, if you competitor raises their prices there's very little reason to not raise yours as well because there's either a) no substitute to that drug or b) patients and doctors are shopping by effect not cost for 99% of the time.


In order to fix a price with your competitor, the only thing you need is an information channel with them.

The price in itself carries information, so, I would not be surprised if in many cases not conversations are happened between the parties, but all the necessary information exchange have happened through the prices. That would be very difficult to police.


This works for competing gas stations. One raises the price by a penny, the one across the street sees this and does the same thing.




Consider applying for YC's Spring batch! Applications are open till Feb 11.

Guidelines | FAQ | Lists | API | Security | Legal | Apply to YC | Contact

Search: