Collusion Theory

Discipline: Economics

Co-operation between two or more companies producing similar goods may entail similar pricing or output levels.

These conditions of competition may be more akin to a monopoly market.

Collusion is outlawed in most capitalist economies.

Also see: administered pricing, monopolistic competition, monopoly, monopoly capitalism

Source:
G J Stigler, 'A Theory of Oligopoly', Journal of Political Economy, 72, 1 (February, 1964), 44-61

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