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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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.
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.
There were no Al-Qaeda attacks in Yemen between 2002 and 2007, mostly due to a tacit collusion between the authorities and armed militants to avoid direct confrontation, Bonnefoy notes.
Rhee (2007) studies tacit collusion in auctions with externalities in a static setup.
This paper reports the results of a laboratory study designed to measure the losses of revenue and efficiency due to tacit collusion among bidders using a simultaneous, multi-unit hard-close auction.
Unfortunately, there is no dearth of human-rights violations in developing countries, sometimes with the tacit collusion of multinational conglomerates; rarely do these tales of terror have happy endings.