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collusion
(redirected from Collusive pricing)

    Also found in: Legal, Encyclopedia, Wikipedia 0.03 sec.

collusion

In business, organizations or individuals acting in concert against the interests of a third party. Many instances of collusion in business are forbidden. A group of companies colluding to fix prices could be prosecuted under legislation against restrictive trade practices. Collusion does not necessarily have negative connotations, and can refer to any relationship that involves close cooperation.



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? Mentioned in ? References in periodicals archive
 
For example, a firm with a large market share may face a higher probability of being charged with collusive pricing or predatory pricing (the "lightning rod" effect).
Structural screens in stochastic markets by Shaffer, Sherrill / Southern Economic Journal
The results generally support the theoretical models' Nash subgame perfect equilibrium predictions, although they also suggest conditions that may lead to collusive pricing behavior--namely when the industry is characterized by cost uncertainty and complement products.
The impact of information sharing opportunities on market outcomes: ... by Cason, Timothy N. / Southern Economic Journal
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