Conscious parallelism occurs when ________.
A)parties at different levels enter into an agreement to adhere to a price schedule that stabilizes prices
B)one party makes an independent choice not to deal with another
C)two or more firms act the same but no concerted action is shown
D)a party's anticompetitive effects outweigh its procompetitive effects

Question

Quizplus · Accepted Answer

Conscious parallelism refers to a situation where two or more firms in the same market independently decide to adopt similar business practices (such as pricing strategies) without any explicit agreement or concerted action between them. This behavior often occurs in oligopolistic markets where each firm is aware of the actions of its competitors and may choose to match those actions to remain competitive, even though there is no direct communication or agreement between the firms to do so.

Conscious Parallelism Occurs When ________