When bidders on a government contract collude to divide markets and eliminate uncertainty, their collusion can be describes as a:

Question

Quizplus · Accepted Answer

Colluding bidders working together to divide markets and eliminate uncertainty is an example of a cooperative game, where the players work together to achieve a common goal. In this case, the common goal is to maximize profits by eliminating competition and increasing their collective bargaining power. A cooperative game is characterized by the ability of players to make binding agreements and enforce them, which is what is happening in this scenario.

When Bidders on a Government Contract Collude to Divide Markets