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and Avoiding Collusion. 1. Purpose and Summary. Collaboration, cooperation, and teamwork are essential aspects of good academic practice, and key skills for life. They are not only acceptable activities to engage in as a student, but they are also strongly encouraged. You are expected to collaborate with other students in all sorts of ways, for ...
This thesis defines collusion broadly as play in a repeated game which differs from play in a one shot game. The analysis of collusion is an important part of many branches of economics. In industrial organization, for example, if collusion were not present then we could restrict investigation to the study of oligopolistic and competitive markets.
Collusion involves engaging in illegitimate cooperation with one or more other students in the completion of assessable work. Cooperation is not legitimate (or appropriate) if it unfairly advantages a student or group of students over others. It can include working with a friend or group of friends to write an essay
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Evaluate the view that collusion between firms in an oligopoly always works against consumer and society’s interests. Use game theory in your answer.
An oligopoly is where the industry or market is dominated by a few producers/firms with a high level of market concentration, where the component firms have a high level of interdependent decision making. Collusion can be tacit and/or explicit, and the aim of which is to achieve higher supernormal profits, with the firms as a whole achieving joint ...
However, collusion between firms can often derive benefits for consumers. For instance, tacit collusion includes firms who monitor what other firms sell to ensure that they are matching the cheapest price in a geographical area, or who market that consumers are “never knowingly undersold” such as John Lewis. This is a case in which firms are techni...
Collusion in an oligopoly can hugely benefit firms, which can have beneficial consequences for society. For instance, collusion between coffee growers allows small firms to push for fairer prices against more dominant monopsonistic corporations such as Starbucks. Furthermore, because these producer cooperatives like Fairtrade are often based overwh...
However, the extent to which this occurs depends on a few factors. Firstly, the vast majority of collusion that takes place isn’t that of poor farmers working together - oligopolies are more concentrated industries with very high barriers to entry, such as the Big Four Accountancy Firms, and pharmaceutical companies. Furthermore, the benefits that ...
In conclusion, the extent of the impact on consumers and firms depends fundamentally on how long the oligopoly is able to carry on collusion - we can analyse this through game theory. Assuming the following pay offs in a cartel such as OPEC, where states agree to collude to reduce production levels and benefit from a higher price: If all firms coop...
Jun 6, 2023 · Here are some economics essay examples: Short Essay About Economics. The Role of Fiscal Policy in Economic Stimulus. Fiscal policy plays a crucial role in shaping economic conditions and promoting growth. During periods of economic downturn or recession, governments often resort to fiscal policy measures to stimulate the economy.
Nov 13, 2020 · Collusion – meaning and examples. Collusion occurs when rival firms agree to work together – e.g. setting higher prices in order to make greater profits. Collusion is a way for firms to make higher profits at the expense of consumers and reduces the competitiveness of the market. In the above example, a competitive industry will have price ...
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1. Introduction. Collusion is broadly defined as an agreement among firms to fix prices or output, usually with the aim of maximising profits. Standard treatments of collusion in intermediate microeconomics textbooks frequently involve a Cournot duopoly facing linear demand with constant marginal costs of production.
