Gamma Food Products competes in the "center-of-the-aisle" packaged foods business. Ever since its founding and membership in the industry, the company has focused on gaining market share. In 2017, it had, by far, the largest market share in the industry and used this advantage to create order and discipline in the industry, particularly in terms of prices. Starting in late 2016, Gamma Food Products' VP of Marketing, Polly Kundig noticed the heads of Gamma's four largest competitors were meeting often surreptitiously, particularly at trade shows. Parallelly, Kundig also noticed that the four firms were pricing their products at around the same level and distinct from the prices of others, including Gamma. In addition, when one of the four made a move in pricing or capacity planning, the others made quick responses.
-The fact that Gamma Food Products' four competitors were pricing their products at around the same level and reacting quickly to each other's moves suggests that they are ________.

Question

Gamma Food Products competes in the "center-of-the-aisle" packaged foods business. Ever since its founding and membership in the industry, the company has focused on gaining market share. In 2017, it had, by far, the largest market share in the industry and used this advantage to create order and discipline in the industry, particularly in terms of prices. Starting in late 2016, Gamma Food Products' VP of Marketing, Polly Kundig noticed the heads of Gamma's four largest competitors were meeting often surreptitiously, particularly at trade shows. Parallelly, Kundig also noticed that the four firms were pricing their products at around the same level and distinct from the prices of others, including Gamma. In addition, when one of the four made a move in pricing or capacity planning, the others made quick responses. 
-The fact that Gamma Food Products' four competitors were pricing their products at around the same level and reacting quickly to each other's moves suggests that they are ________.

Quizplus · Accepted Answer

The competitors pricing their products at around the same level and reacting quickly to each other's moves suggest that they are signaling, meaning they are communicating or sending signals to each other to coordinate their actions and maintain stability in the industry.

Gamma Food Products Competes in the "Center-Of-The-Aisle" Packaged Foods Business