9. In order to limit the ability of oligopolists to collude and act like monopolists, most governments

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9. In order to limit the ability of oligopolists to collude and act like monopolists, most governments pursue an antitrust policy designed to make collusion more difficult. In practice, however, tacit collusion is widespread. A variety of factors make tacit collusion difficult:

large numbers of firms, complex products and pricing, differences in interests, and bargaining power of buyers.

When tacit collusion breaks down, there is a price war.

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Essentials Of Economics

ISBN: 9781429218290

2nd Edition

Authors: Paul Krugman, Robin Wells, Kathryn Graddy

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