Non-Collusive Behaviour

• What are the factors of non-collusive behaviour?


  • Competition
  • Legal constraints
  • Differences in objectives
• How is competition a factor of non-collusive behaviour?


  Firms may choose to compete aggressively to gain market share and increase profits individually.
• How are legal constraints a factor of non-collusive behaviour?


  Antitrust laws and regulations prohibit collusion, encouraging firms to compete independently.
• how are differences in objectives a factor of non-collusive behaviour?


  Firms may have differing goals and incentives that make collusion difficult.