Oligopoly behavior.
w
Number of sellers high.
w
Products heterogeneous.
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Large differences in costs.
w
Orders lumpy and infrequent.
w
Price information is secret.
w
Role of trade associations.
w
“Social structure” not conducive
to collusion.
Elbert H. Gary (
1846-1927)
, founder
of U. S. Steel and convener of the
famous “Judge Gary dinners” at which
Steel industry competitors set
production quotas and collusive prices.
Secret price cutting most likely when:
