Question

In the framework of an oligopoly, what strategy can work like a silent form of cooperation? legally enforceable agreements always match other cartel firms' price cuts, but don't match price increases immediately match price increases always match other cartel firms' price increases, but don't match price cuts

Answer 1

In the framework of an oligopoly, what strategy can work like a silent form of cooperation? Always match other cartel firms' price cuts, but don't match price increases. An oligopoly is where there is limited competition and the market is shared by a limited amount of producers and sellers. Because there is a limited amount, people are already in a higher likelihood to purchase the items.