Collusive Oligopoly in Economics (With Diagram)
In this article we will discuss about collusive oligopoly and how is price determined in this oligopoly. When there is product differentiation, i.e., differentiated oligopoly, two or few sellers may recognise that their prices are closely interrelated. Since each firm is a price-searcher, each will guess and learn from experience that as and when it cuts its price, its rivals [...]