> So are they saying that the free market is basically not a thing anymore because of covid, and no company wants to get an edge over its competitors by undercutting on price despite having record margins?
Covid has nothing to do with it. Market always worked this way. There's really very little reason for a company to lower the prices below what consumers are already willing to pay. When the market is saturated and all customers are accustomed to paying certain level of prices for a given good and you try to lower your prices for that good it won't automatically mean you'll sell more. You might even sell less because people will assume you sell a good of lower quality. It can take decades for the customers to learn while you are leaving profits on the table. Profits that you might have used for marketing to actually get more sales at higher price.
It is what helps one understand that demand and supply are not only things that dictate the price of even a very common goods, even in absence of advertisement.
As US and western customers are getting poorer for the first time in decades they are just starting to notice the inflation. The inflation was there before and companies were milking it at least since 2000, but since customers still had money nobody was really thinking about it. Of course only recently inflation got as high as it is, because of all the money printing done in the pandemic and a bit before.
Covid has nothing to do with it. Market always worked this way. There's really very little reason for a company to lower the prices below what consumers are already willing to pay. When the market is saturated and all customers are accustomed to paying certain level of prices for a given good and you try to lower your prices for that good it won't automatically mean you'll sell more. You might even sell less because people will assume you sell a good of lower quality. It can take decades for the customers to learn while you are leaving profits on the table. Profits that you might have used for marketing to actually get more sales at higher price.
Try to buy a box of crayons in Florence, Italy.