Tacit collusion is more likely to be a concern with
A) horizontal alliances.
B) vertical alliances.
C) international alliances of any kind compared with domestic alliances.
D) U.S. alliances with companies in less- developed countries.

Question

Quizplus · Accepted Answer

Tacit collusion is more likely to occur in horizontal alliances where firms are in the same market and compete directly with each other. In contrast, vertical alliances involve firms at different stages of the supply chain and may have less direct competition. International versus domestic alliances or alliances with companies in less-developed countries versus developed countries may have various implications, but do not necessarily increase the likelihood of tacit collusion.

Tacit Collusion Is More Likely to Be a Concern with