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3.4.4 Oligopoly - Collusive Behaviour (Edexcel A-Level Economics Teaching PowerPoint)

Level:
A-Level
Board:
Edexcel

Last updated 23 Sept 2023

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This PowerPoint covers collusive behaviour in oligopolistic markets

Collusive behavior in an oligopoly refers to when the firms within the oligopoly engage in cooperative agreements or actions to limit competition and increase their collective profits. This collusion can take various forms, but the most common type is price-fixing, where firms agree to set prices at a certain level or to coordinate their pricing strategies.

Collusion typically involves some level of cooperation and communication among the oligopoly's members. It can lead to higher prices for consumers, reduced output, and decreased overall market efficiency. Collusive behavior is generally illegal in many countries and is subject to antitrust laws and regulations aimed at promoting fair competition and protecting consumers' interests.

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