COLLUSION: A usually secret agreement among competing firms (mostly oligopolistic firms) in an industry to control the market, raise the market price, and otherwise act like a monopoly. The reason for the secrecy is that such behavior is illegal in the United States under antitrust laws. Collusion is a characteristic trait of oligopolistic industries. Intense competition and interdependent decision-making encourages oligopolistic firms to cooperate. One way to lessen the competition among an oligopolistic rival is to join forces through collusion. (The other way is through merger, but that's another entry.)

     See also | oligopoly | market control | industry | firm | monopoly | antitrust laws | competition | competition among the few | merger | explicit collusion | implicit collusion | cartel | Organization of Petroleum Exporting Countries | price leadership |

COLLUSION, AmosWEB GLOSS*arama, http://www.AmosWEB.com, AmosWEB LLC, 2000-2023. [Accessed: March 25, 2023].

Additional information on this term can be found at:

WEB*pedia: collusion

Back to the GLOSS*arama

A buyer or seller that possess sufficient market control to affect the price of the good. From the selling side of the market, a monopoly is the best example of a price maker. From the buying side of the market, a monopsony is also a price maker. This is one of two alternatives related to control over price. The other is price taker. Price maker is also termed price setter.

Complete Entry | Visit the WEB*pedia

Today, you are likely to spend a great deal of time watching infomercials looking to buy either semi-gloss photo paper that works with your neighbor's printer or a birthday gift for your father that doesn't look like every other birthday gift for your father. Be on the lookout for defective microphones.
Your Complete Scope

This isn't me! What am I?

-- Sir Winston Churchill

User Feedback