What company colludes with competition to cost themselves money while increasing their competition’s profits? Do you think they intentionally start fires and blow up their own units?!?!
In a tight market, if your plant ‘accidentally’ has be shut in for repairs while my plant remains open, ALL participants gain from a higher price. After all, gasoline is VERY price inelastic. If these temporary shut ins rotate among the limited number of players, ALL gain due to the higher price received by all. The key is that gasoline is very price inelastic. We, as a society, are addicted to our gasoline and, though we complain about the increased prices, few then choose to take the bus, walk or ride a bike. The oil companies win.
If you do not believe that collusion is rampant, just take a look at share trading for a company whose results differ markedly from forecasts. What you will see is that two to three days before the results are announced, you will see a flurry of trades. Because of Sarbanes-Oxley, they are NOT insiders trading BUT, the insider will pass on info to a LLB or CPA friend, who passes it on to someone in the know at another company. Later, it becomes quid pro quo, as the favour is returned, a real ‘old boys network’. No benefit for the working stiff but the execs benefit their portfolios with such information. The rich get richer and the poor go broke!