List of factors which facilitate collusion continued..
- Similar market shares
- Less like one firm will feel the need to "catch up."
- Economic stability
- Instability, especially recessions, hurt profits and sales and will generally lead to price cuts to increase sales.
- Ease with which "cheating" can be observed
- If it's easy to observe your competitor's prices cheating will be less likely. In some industries where most sales are at the wholesale level it may be more difficult.
- History of similar pricing
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