Showing that ostensibly independent firms consistently set prices at the same levels and change prices at the same time in an attempt to conspire horizontally is known as:
A) conscious parallelism.
B) intrabrand competition.
C) tying arrangements.
D) predatory pricing.

Question

Quizplus · Accepted Answer

The behavior described in the question is known as conscious parallelism, where firms, even though they are acting independently, tend to set prices at the same levels and change prices at the same time in an attempt to coordinate and conspire horizontally. Therefore, the best choice is A. The other options (B, C, and D) are not related to the described behavior.

Showing That Ostensibly Independent Firms Consistently Set Prices at the Same