Best Lights and Bright Lights are two light bulb suppliers that are competing with each other. If Best Lights announces an upcoming price change next month, it may be signaling to Bright Lights its intent to engage in _________.

Question

Quizplus · Accepted Answer

If Best Lights announces an upcoming price change next month, it may be signaling to Bright Lights its intent to engage in tacit collusion, which is a form of non-explicit collusion where firms coordinate their behavior without any formal agreement.

Best Lights and Bright Lights Are Two Light Bulb Suppliers