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Sorting The Collusive Goats from The Consciously Parallel Sheep

BY | July 16, 2018

By Aaron M. Panner This comment distinguishes oligopolistic price coordination – tacit collusion – from competitive conscious parallelism. The key characteristic of tacit collusion is that the success of a…

By Aaron M. Panner

This comment distinguishes oligopolistic price coordination – tacit collusion – from competitive conscious parallelism. The key characteristic of tacit collusion is that the success of a price hike depends on rivals’ adoption of a parallel increase; otherwise, competitive losses will force the price leader to retract the increase. But certain price increases may reflect competitive pricing strategies designed to increase prices for customer segments and services for whi

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