Firms have a fiduciary responsibility to their shareholders to engage in profit-maximizing behavior. If the consumer is not particularly price-elastic, then the firm should raise prices to increase revenue. Firms are not engaging in any kind of collusion, they're simply taking signals from the market. Trust me, pricing hikes backfire all the time... Right now, my company has far greater pricing power in the US than we do in the EU, for example. Is that because the American consumer is healthier, the EU consumer smarter, or something else? Who knows (well, we have theories). Nonetheless, our pricing strategy is planned accordingly.