Collusion: Examples of Price Fixing

Building on our recent study of oligopoly markets and game theory, here’s a great example of price fixing in action:

Take a look at these examples and summarise two of them for discussion in class:

http://www.tutor2u.net/economics/blog/oligopoly-recent-examples-of-price-fixing-behaviour

  1. What collusive behaviour occurred?
  2. What was the potential benefit to the firms, and the impact on consumers?
  3. What was the outcome?

Thanks to Sasha and Louisa for this example:

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