Which of the following is true regarding conscious parallelism?
A) Proof,standing alone,that firms changed prices at the same time is sufficient to prove a horizontal conspiracy to set prices regardless of whether the firms initially set prices at the same levels.
B) Proof,standing alone,that firms initially set prices at the same levels is sufficient to prove a horizontal conspiracy to set prices regardless of whether the firms later changed prices at the same time.
C) Showing that firms consistently set prices at the same levels and change prices at the same time is sufficient to prove a horizontal conspiracy to set prices.
D) Merely showing that firms consistently set prices at the same levels and change prices at the same time is insufficient to prove a horizontal conspiracy to set prices.

Question

Quizplus · Accepted Answer

Merely showing that firms consistently set prices at the same levels and change prices at the same time is insufficient to prove a horizontal conspiracy to set prices. Conscious parallelism is not enough evidence to prove collusion because firms may be responding to market conditions or industry standards rather than coordinating with each other. Additional evidence, such as direct communications or exchanged information between the firms, is needed to prove a horizontal conspiracy to set prices.

Which of the Following Is True Regarding Conscious Parallelism