What is the term for the act that businesses commit when they agree to set prices and increase their control of the market share?.

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21-10-2022
Business

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What is the term for the act that businesses commit when they agree to set prices and increase their control of the market share?.

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NikitaPatel213 NikitaPatel213 · Answer 1 · 2022-10-29T09:01:26+02:00

Collusion can occur across a variety of market types and take many different shapes. In each situation, groups as a whole have an unfair advantage. One of the most common types of collusion is price fixing.

Collusion occurs when businesses or individuals work together to influence a market or price for their personal gain. Examples of collusion include the rigging of prices, coordinated advertising, and the sharing of insider information.

Whistleblower and antitrust laws deter collusion. Price fixing occurs when a specific supplier market has a limited number of businesses, or when there is an oligopoly. This small group of businesses works together to decide on the price for a product they both sell.

Companies run the risk of colluding when they coordinate their marketing operations.

Learn more about collusion from the given link.

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