Question

Why might price collusion occur in oligopolistic industries? Assess the economic desirability of collusive pricing. What are the market obstacles to collusion? Speculate as to why price leadership is legal in the United States, whereas price-fixing is not. You work for a regional manufacturer, you are attending the industry trade show working your booth, a competitor passes through and attempts to discuss your prices, future price moves, or territorial divisions. What do you do? (4 pts. possible - 150 words)