Collusive Behaviour

• What are the factors involved in collusive behaviour?

  • Maintaining high prices
  • Stability
  • Avoiding price wars
• How is maintaining high prices a factor of collusive behaviour?


  Firms in an oligopoly may collude to set high prices and limit competition, increasing their profits collectively.
• How is stability a factor of collusive behaviour?


  Collusion can provide market stability, reducing uncertainty for firms and consumers.
• How is avoiding price wars a factor of collusive behaviour?


  Collusion helps firms avoid destructive price wars.