Topic summary
Oligopolies
Extracted from the Wikipedia article Oligopoly.
Oligopolies and competition laws
Oligopolies are assumed to be aware of competition laws as well as the repercussions that they could face if caught engaging in anti-competition behaviour. In lieu of explicit communication, firms may be observed as engaging in tacit collusion, which occurs through competitors collectively and implicitly understanding that by jointly raising prices, each competitor can achieve economic profits comparable to those achieved by a monopolist while avoiding breaches of market regulations.