How can collusion affect pricing in an oligopoly? Why is collusion difficult to detect? Would you expect collusion to be more prevalent in an industry with three competitors or one with eight competitors? Please explain your answer in details.
How can collusion affect pricing in an oligopoly? Why is collusion difficult to detect? Would you expect collusion to be more prevalent in an industry with three competitors or one with eight competitors? Please explain your answer in details.
Related textbook solutions
Related questions
1. In the kinked demand curve model:
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A. Competitors follow any price change by a rival firm. |
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B. Competitors ignore any price change by a rival firm. |
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C. Competitors match any price increase and ignore any price decrease by a rival firm. |
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D. Competitors ignore any price increase and match any price decrease by a rival firm.
2. Force is competing with three other firms for a military contract to remove land mines. Which of the following would not be a part of their competition strategy?
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