That is a really incomplete analysis. Part of the complaint is that housing is available, but the cartel withholds rental units from the market in order to maximize profits.
Like, if 10,000 new residences have been built then the most profitable thing might be to buy them all up and keep them empty.
> if RealPage sets the price too high
By definition, 'too high' is when there's a problem.
> The basic money formula for a rental unit is occupancy * rental price.
That is too basic. You omitted elasticity. Rental price is a function of overall demand, which in turn is based on regional occupancy. Collusion to reduce regional occupancy can artificially increase demand, and therefore the rental price, giving an overall higher profit than true competition.
> if all the landlords
100% is a pointless number. There will always be someone who, for example, rents out a place to a relative at below market rates, so 100% will never be met.
The lysine cartel did not control 100% of the lysine market.
That is a really incomplete analysis. Part of the complaint is that housing is available, but the cartel withholds rental units from the market in order to maximize profits.
Like, if 10,000 new residences have been built then the most profitable thing might be to buy them all up and keep them empty.
> if RealPage sets the price too high
By definition, 'too high' is when there's a problem.
> The basic money formula for a rental unit is occupancy * rental price.
That is too basic. You omitted elasticity. Rental price is a function of overall demand, which in turn is based on regional occupancy. Collusion to reduce regional occupancy can artificially increase demand, and therefore the rental price, giving an overall higher profit than true competition.
> if all the landlords
100% is a pointless number. There will always be someone who, for example, rents out a place to a relative at below market rates, so 100% will never be met.
The lysine cartel did not control 100% of the lysine market.