The National — Bread Collusion in Canada

Over the past 15 years bakers in Canada have been colluding to raise the price of bread across many of Canada’s major retailers. The retailers (allegedly) agreed to the price increase so long as the others in the group also maintained the high prices. While some of the retailers are denying the claim, Canada’s┬áCompetition Bureau is developing a case to expose the participants.

I Love Lucy — 5 Cent Hamburgers

Price wars aren’t good for business profits, which is why many firms may want to collude. If two goods are close substitutes, prices should be driven down near the marginal cost of production.

Up ↑