Oh I would never, the *free market* should have simply corrected for this! Surely their competition will clean up in light of this new (17 year out of date) information.
Yes - I took Economics 101 long ago, too. For some reason it didn't explain that the process works equally well in reverse - where the companies simply agree to stick to a given standard of high price, poor quality, and rotten service.
But, I hear you cry, what about anti-trust laws and suchlike that forbid "cartels" and conspiracies against the customer?
They are, if possible, even less enforceable than the laws against ripping DVDs. And breaking them is much, much more lucrative.
"The proposal of any new law or regulation of commerce which comes from this order [dealers], ought always to be listened to with great precaution, and ought never to be adopted till after having been long and carefully examined, not only with the most scrupulous, but with the most suspicious attention. It comes from an order of men, whose interest is never exactly the same with that of the public, who have generally an interest to deceive and even to oppress the public, and who accordingly have, upon many occasions, both deceived and oppressed it".
- Adam Smith, "The Wealth of Nations"
"People of the same trade seldom meet together, even for merriment and diversion, but the conversation ends in a conspiracy against the public, or in some contrivance to raise prices. It is impossible indeed to prevent such meetings, by any law which either could be executed, or would be consistent with liberty or justice. But though the law cannot hinder people of the same trade from sometimes assembling together, it ought to do nothing to facilitate such assemblies; much less to render them necessary".
- Adam Smith, "The Wealth of Nations"