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Genrish500 [490]
3 years ago
7

What is the difference between explicit collusion and implicit​ collusion? Unlike explicit​ collusion, implicit collusion

Business
1 answer:
lesya [120]3 years ago
4 0

Answer:

The basic difference between both are explained below.

Explanation:

Explicit collusion is where firms meet and agree to charge the same price, and an example of implicit collusion is price leadership. Unlike explicit collusion, implicit collusion unlike explicit collusion, implicit collusion is where firms signal to each other without actually meeting and agreeing to charge the same price.

Unlike explicit collusion, wherever the occurrence of an accommodation that would lend ammunition for an antitrust court case might be unscrewed, implied collusion is challenging to document as well as to verify. Implicit collusion frequently seems to be nothing more than all firms individually responding to shifting market circumstances.

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