Tactic collusion occurs when firms:
A) meet and decide on their collusion tactics.
B) limit competition with one another but they do so without explicit agreement or communication.
C) meet and play the prisoner's dilemma just once.
D) cheat rather than cooperate.

Question

Quizplus · Accepted Answer

Tactic collusion occurs when firms limit competition with one another without explicit agreement or communication. This can involve using strategies such as price leadership or mirroring each other's pricing decisions without explicitly discussing it. It is different from explicit collusion, where firms meet and decide on their collusion tactics.

Tactic Collusion Occurs When Firms