The lawsuit didn’t identify the former employees. The court filing said two former Rainmaker employees told attorneys the company’s products are used by 90% or “just about every” property on the resort-lined Las Vegas Strip. “In effect, the firms themselves don’t directly share their pricing strategies,” she said, “but that information still ends up in common hands, and that shared information is then used to maximize market-wide prices.” “We even have an old-fashioned term for it,” Ohlhausen said, “the hub-and-spoke conspiracy.”
She said companies provide their pricing data to “a common, outside agent” that uses the information to program its algorithm “to maximize industry-wide pricing.”