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.
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.
Apple has, what, 20% smartphone market share?
And look at the margins they're able to run. Granted, boosted by platform lock-in.
I offer that if you get to fix prices for a good chunk of 40 years, and then still end up with 64% market share... it does work.
In the sense that your company will have made obscene amounts of money, by price fixing, while the above played out.
If your rebuttal is that in the end they lost market share, true. But they made enough money before that happened that it's still a win.
If you're interested in the subject, The Prize: The Epic Quest for Oil, Money, and Power by Daniel Yergin is a fascinating read.