collusion Flashcards
1
Q
what is collusion and example
A
- where two or more firms agree to limit competition
- where firms fix prices in order to avoid price wars
2
Q
why do firms collude
A
in order to avoid price wars and keep revenue high
3
Q
what are 2 types of collusion
A
- overt collusion
- tacit collusion
4
Q
what is overt collusion
A
a formal agreement between firms
5
Q
what is tacit collusion
A
an unspoken agreement between firms
6
Q
what are the benefits to whistle blowing for firms
A
- the firms gain immunity from the CMA whereas the other firms lose profit
