Which of the following are important determinants of collusion in pricing games?
A) The number of firms
B) Firm size
C) History
D) All of the statements associated with this question are correct.

Question

Quizplus · Accepted Answer

All of the statements are important determinants of collusion in pricing games. The number of firms affects the difficulty of collusion, as it is easier for a small number of firms to coordinate and reach agreements. Firm size may also play a role, as larger firms may have more market power and a greater ability to enforce agreements. History is important because past collusion behavior can signal to other firms the likelihood of future collusion.

Which of the Following Are Important Determinants of Collusion in Pricing