Conscious parallelism is seen when ________.
A) parties at different levels enter into an agreement to adhere to a price schedule that stabilizes prices
B) one party makes an independent choice not to deal with another
C) two or more firms act the same but no concerted action is shown
D) a party's anticompetitive effects outweigh their procompetitive effects

Question

Quizplus · Accepted Answer

Conscious parallelism occurs when two or more firms in the same market independently decide to adopt similar business practices (such as pricing strategies) without any explicit agreement between them. This behavior often emerges in oligopolistic markets where firms are highly aware of each other's actions and may choose to match prices or policies to avoid price wars, even though there's no direct communication or agreement to do so.

Conscious Parallelism Is Seen When ________