If sellers can fix prices so easily they’re a cartel. Your whole economy is way fucked in that case so you definately need radical reform of one type or another, UBI is the least of your worries. Paying monopoly prices for everything is your big problem, you do need to get on with effective anti-trust action - or other radical market reform.
Even if no prosecution due to regulatory capture and so on though, a cartel of enough oligopolists in inherently unstable and they have to work hard to keep up the cooperation, it becomes a complex situation but underying it, the first one to cut prices will sell way more units and eat the others market share . This doesn’t work all the time in all industries, but general competetive pressure does sometimes work to mediate excess profits in some circumstances.
Now, if you’d picked a broken market like rents and said landlords fix rental prices higher, yes - dysfunctional market, high barriers to entry, no real liquidity, rare transactions, powerful intermediators, weak ill informed buyers; yes such a market probably would benefit from price regulation or increasing social housing provision.
I’d love to see the evidence for the 1:1 happening in practice. I suspect it’s someone’s perverse-dream, very strong assumptions about universal sellers power and consumers total inability to substitute.
If sellers can fix prices so easily they’re a cartel. Your whole economy is way fucked in that case so you definately need radical reform of one type or another, UBI is the least of your worries. Paying monopoly prices for everything is your big problem, you do need to get on with effective anti-trust action - or other radical market reform.
Even if no prosecution due to regulatory capture and so on though, a cartel of enough oligopolists in inherently unstable and they have to work hard to keep up the cooperation, it becomes a complex situation but underying it, the first one to cut prices will sell way more units and eat the others market share . This doesn’t work all the time in all industries, but general competetive pressure does sometimes work to mediate excess profits in some circumstances.
Now, if you’d picked a broken market like rents and said landlords fix rental prices higher, yes - dysfunctional market, high barriers to entry, no real liquidity, rare transactions, powerful intermediators, weak ill informed buyers; yes such a market probably would benefit from price regulation or increasing social housing provision.
I’d love to see the evidence for the 1:1 happening in practice. I suspect it’s someone’s perverse-dream, very strong assumptions about universal sellers power and consumers total inability to substitute.