ECONOMICS
COMPETITION AND MARKET STRUCTURES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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oligopoly
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cartel
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collusion
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government
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Detailed explanation-1: -Collusion is a non-competitive, secret, and sometimes illegal agreement between rivals which attempts to disrupt the market’s equilibrium. The act of collusion involves people or companies which would typically compete against one another, but who conspire to work together to gain an unfair market advantage.
Detailed explanation-2: -"The Three Types of Collusion: Fixing Prices, Rivals, and Rules” by Robert H.
Detailed explanation-3: -There are two types of collusion tacit collusion and explicit collusion. The tacit technique employs various methods to achieve results, the most popular being price leadership. The other type is explicit collusion, where businesses openly coordinate to agree on collusive methods.
Detailed explanation-4: -Collusion in economics is the collaboration between companies that seek to gain an extensive competitive advantage in the marketplace. Characteristics of collusion are price fixing, secret meetings, insider trading, non-competitiveness, and disruption of the market equilibrium.