Why Might Price Collusion Occur with Oligopoly?

Answer

Oligopoly is a trade market form where an industry is a few sellers thus lacking competition and leading to high prices for products or services. Price collusion is an illegal agreement between two traders to limit competition in a market. This can very easily occur in Oligopoly because it has very few unrestricted traders who control the market due to the fact that it's only them who have the high demand product or service.
Q&A Related to "Why Might Price Collusion Occur with Oligopoly..."
Prices in a collusive oligopoly are unlike to fall, because if prices fall that only benefits the consumer, so the firms will not do it. Also in a collusive oligopoly firms get together
http://wiki.answers.com/Q/Specific+examples+of+an+...
B/c it is possible and profitable. It is usually economically undesirable - it hurts buyers more than it benefits sellers. But if government values sellers more than buyers, it can
http://answers.yahoo.com/question/index?qid=201012...
Good students ask more questions. eNotes educators are standing by. Join a community of thousands of dedicated teachers and students. JOIN eNOTES
http://www.enotes.com/homework-help/why-might-an-o...
If firms within an industry are in an oligopoly and enter into collusive behaviour they act as a monopoly. Acting as a cartel can also stop revenue and prices from being unstable
http://tutor2u.net/blog/index.php/economics/commen...
Explore this Topic
A price-leadership model of oligopoly may not be an effective means of collusion in an oligopoly because it does not convey all of the necessary information to ...
A price-leadership model of oligopoly may not be an effective means of collusion in an oligopoly because it does not convey all of the necessary information to ...
About -  Privacy -  AskEraser  -  Careers -  Ask Blog -  Mobile -  Help -  Feedback © 2014 Ask.com