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08-30-2004, 12:31 AM
  #120
ginner classic
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Quote:
Originally Posted by I in the Eye
Ya, it perhaps would be difficult to prove...

Just to be clear, I see the Petrolium company collusion example different from the NHL collusion example...

Petrolium companies are all separate businesses that are in the oil industry... If collusion exists, this is cross-industry price fixing...

In contrast, the team franchises all belong to the same business (the NHL)... I personally don't have a problem with the team franchises fixing salaries (as they all belong to the same business - in fact, this is both common and legal in the franchising business - and IMO, I think that the franchisee - the NHL - should probably be determining the NHL salaries based on the salaries in the overall free market 'professional hockey industry')... But I do have a problem with the NHL doing it secretly - if they agreed with the NHLPA a completely different arrangement... IMO, that's collusion and illegal... In this case, the NHL is not obligating their legal contract... In this case, the NHL is being deceptive in getting around their legal contract through a 'secret' agreement amongst the franchises - and that's illegal...
The phrase collusion can and should be applied to any instance where one group of people or organizations pool efforts or make agreements to disadvantage another group of people. The word is used when such an agreement is tacit or otherwise. Collusion DOES apply (and I think most historical instances have been so) when there is an oligopoly, or oligopolistic competition (a small number of large/powerful companies in a large industry). Banking, Oil and Gas, Transportation, and Communications are all very good examples.

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