[consulting] Estimation-Blowout case-studies wanted

[Eric Goldhagen]

At 1:36 PM -0500 3/2/09, Sam Cohen wrote:
>As far as I know, there's no law or rule against sharing rates.  The 
>only thing illegal is conspiring to fix prices. 
>
>There's no reason I can see that would prevent developers from 
>sharing with other developers what their rates  are-- and I can't 
>see how it's any different than Amazon sharing what they sell their 
>books for. 
>
>I can't say for sure, but this idea sounds like an urban legend to 
>me.  Of course, sharing rates for the purpose of fixing prices is 
>price fixing, but that's something else altogether.  Perhaps what 
>you can't do is ask a list 'hey, I'm trying to figure out what to 
>charge, so can you all tell me what you charge so I set my rates 
>accordingly."   
>
>If I'm wrong about this, I'd love to see some evidence to the contrary. 
>
>Thanks,
>Sam

Companies discussing their rates publicly with other companies, in 
the US, can be considered an element of illegal price fixing -- Even 
when fixing prices is not the intent of the discussion. If a 
conversation on this list indirectly led to some 
companies/consultants raising their rates to be in-line with their 
competition, it could cross the line and become illegal.

It is best to simply avoid discussions of rates on public lists if 
the people posting information operate within the US.

I know it sounds like an urban legend, but just talking about rates 
on a list like this could at some point be used against the people on 
this list. The chances of this happening are probably very very 
small, but the risk is real.

from wikipedia (and verified as a valid concern by a lawyer who asked 
to not be named):
Under American law, exchanging prices among competitors can also 
violate the antitrust laws. This includes exchanging prices with 
either the intent to fix prices or if the exchange affects the prices 
individual competitors set. Proof that competitors have shared prices 
can be used as part of the evidence of an illegal price fixing 
agreement.[5] Experts generally advise that competitors avoid even 
the appearance of agreeing on price.[6]

--Eric
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