[sprinkly-dust]

That is one of the possible outcomes right? Producers have an incentive to collude and not compete with one another. They could create a consortium to fix prices, and use tactics such as acquisitions or _dissuasion_ to prevent new, more efficient competitors from undercutting their prices, thus distorting a free market equilibrium.

The consortium creates an oligopoly which prevents mutually beneficial deals that would have otherwise taken place in a regulated competitive free market between consumers and producers.