ECONOMICS
COMPETITION AND MARKET STRUCTURES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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pricing fixing
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trust
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market share
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oligopoly
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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: -Collusion is primarily an illegal secretive agreement or cooperation between two parties intending to disrupt market stability. Generally, individuals or companies who normally compete against each other decide to work together and influence the market to achieve competitive market advantage.
Detailed explanation-3: -Examples of collusion are: Several high tech firms agree not to hire each other’s employees, thereby keeping the cost of labor down. Several high end watch companies agree to restrict their output into the market in order to keep prices high.
Detailed explanation-4: -"The Three Types of Collusion: Fixing Prices, Rivals, and Rules” by Robert H.