Question

Airline a and airline b are the two largest airlines in the country. the chief executive officer of airline a calls the chief executive officer of airline b and says, "why don't we both raise prices 25% across the board next week?" this is an example of:

Answer 1

I would say this type of arrangement between the two largest airlines could be considered a type of cartel whereby most or a high % of the airline passenger market is controlled mostly by two airlines so they think they can raise prices unilaterally.