Which of the following strategies allows interdependent firms indirectly to coordinate their actions?
A) Cost cutting
B) Vertical integration
C) Preemption
D) Price signaling
E) Horizontal mergers

Question

Quizplus · Accepted Answer

Price signaling is a strategy where one firm communicates price changes to others in the industry, indirectly allowing interdependent firms to coordinate their actions. This is because firms often adjust their own prices in response to price changes made by competitors, leading to a degree of coordination in pricing behavior.

Which of the Following Strategies Allows Interdependent Firms Indirectly to Coordinate