tacit collusion


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tacit collusion

a situation where a small group of oligopolists (see OLIGOPOLY) recognize their MUTUAL INTERDEPENDENCE and act to coordinate their behaviour without any explicit agreement, using PRICE LEADERSHIP or other strategies. Compare EXPLICIT COLLUSION.
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What makes the Mueller claim especially disastrous is the reality of tacit collusion staring us in the face.
Tacit collusion is easy in those markets, see In re Text Messaging Antitrust Litigation, 782 F.3d 867 (7th Cir.
The researchers consider advertising, tacit collusion, pricing fairness, and managerial overhead to explain why uniform pricing prevails.
'When there are a few players, there is a likelihood for them for tacit collusion even if they don't talk.
Although the major group commanders of Uzair and Baba Ladle group have either gotten killed or are on the run due to excellent joint operation of intelligence agencies and law enforcement agencies the business of drugs, GUTKA continues unabated due to tacit collusion of Sindh police.
The set of game theory models (usually non-cooperative, static or dynamic, with various strategic and informational assumptions) that replicate the mechanism of an explicit and especially, tacit collusion is very rich and could be a basis of research hypotheses concerning market players' behaviour (1).
The report distinguishes two questions: whether there is joint dominance, associated with tacit collusion, and what is the threshold to prove it; and whether we have situations where there is no tacit collusion, but uncoordinated behavior within a tight oligopoly still results in a poor outcome.
However, an examination of current textbooks suggests that strategic management now places an increasing emphasis on cooperative strategies, including strategic alliances and tacit collusion, as avenues toward the goal of sustainable competitive advantage.
A Germany documentary exposed a state-sponsored doping programme in Russia with tacit collusion with corrupt coaches and administrators.
Both in the United States and the European Union there have been significant difficulties in the enforcement of laws prohibiting collusion when companies engage in tacit collusion wherein, without communication with each other, they exploit their interdependence achieved by collective dominance in order to establish parallelism resulting in anticompetitive effects.
The Competition Commission also looked at purely competitive aspects of the market, in other words it considered whether big four' firms engage in tacit collusion; whether they bundle audit and non-audit services together in order to raise barriers to expansion to other firms; and whether they target the customers of mid tier' firms with particularly low prices.
In their "price and quantity" games with both two and three sellers Brandts and Guillen report high prices relative to Walrasian ("competitive") predictions, and numerous instances where sellers divided the market at the joint-maximizing price, a result which can only be attributed to tacit collusion. Although their design was well suited for their intended research objective (of evaluating performance relative to "pure quantity" and "pure price" benchmarks), it is of limited use for identifying the incremental effects of advance production relative to standard posted-offer markets, because the authors conduct no baseline "to demand" markets against which performance in their advance production markets can be compared.