Homework answers / question archive / Collusion is a non-competitive arrangement or agreement between rival firms intended to exploit profit and disrupt the market

Collusion is a non-competitive arrangement or agreement between rival firms intended to exploit profit and disrupt the market

Economics

Share With

Collusion is a non-competitive arrangement or agreement between rival firms intended to exploit profit and disrupt the market. Sharing private information between different people or groups is also a for of collusion.

Collusion by definition is a secret or illegal cooperation or conspiracy, especially in order to cheat or deceive others. Since companies subject to the competition law to avoid monopolisation, some companies resort to doing a secretive agreement that maximises their profit by price fixing, supply restriction, and insider information trade.