Tacit collusion exists when firms coordinate their pricing decisions not by directly communicating with each other but by exchanging signals with other firms about their intent to cooperate.

Question

Quizplus · Accepted Answer

Tacit collusion involves implicit coordination among firms through external signals or other forms of indirect communication, without any explicit agreement or communication. Therefore, it is true that firms coordinate their pricing decisions through signals without directly communicating with each other in tacit collusion.

Tacit Collusion Exists When Firms Coordinate Their Pricing Decisions Not