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To Collude, or Not to Collude: The Economics Behind Collusion Explained in One Minute
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People tend to imagine an evil scenario whenever coming across the term "collusion" and... well, rightfully so, in a way (although the negative connotation is not universally accepted, with let's say liberatrians having nothing against the idea/freedom of colluding).
But what does collusion actually mean and what are the economics behind it?
In just one minute and fourty-two seconds, this video explains how exactly individuals and/or companies collude.
You will find out, through an example which should leave little room for interpretation, what the incentives associated with collusion are, incentive many players consider compelling enough for collusion to make sense despite the fact that in most Western jurisdiction, this practice violates antitrust laws.
Finally, it's ultimately your right to decide for yourself whether collusion is good, bad or anywhere in-between. Like many topics associated with economics, controversy is widespread, even among those who are let's say pro-competition. For example, a right-leaning voter who does however believe in some state involvement might be against collusion, whereas a libertarian who believes in limitless freedom might state that if market participants choose to collude, it's their prerogative :)
But what does collusion actually mean and what are the economics behind it?
In just one minute and fourty-two seconds, this video explains how exactly individuals and/or companies collude.
You will find out, through an example which should leave little room for interpretation, what the incentives associated with collusion are, incentive many players consider compelling enough for collusion to make sense despite the fact that in most Western jurisdiction, this practice violates antitrust laws.
Finally, it's ultimately your right to decide for yourself whether collusion is good, bad or anywhere in-between. Like many topics associated with economics, controversy is widespread, even among those who are let's say pro-competition. For example, a right-leaning voter who does however believe in some state involvement might be against collusion, whereas a libertarian who believes in limitless freedom might state that if market participants choose to collude, it's their prerogative :)
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