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When oligopolists collude.. HELP!?

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    ReputationRep:
    "When oligpolists collude, the results can be anti-competitive and against the consumer interest"

    Evalutate policies that could be used to deal with the problem.


    So far i've only got: Subsidising new entrants to the market in order to increase competition..

    Any other ideas guys? :confused:
  2. Offline

    ReputationRep:
    Anti trust policies to prohibit collusion.

    Government regulate pricing so that the market price is closer to marginal cost (requires government to have knowledge of the market to be able to set the price regulation appropriately).

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Updated: March 25, 2012
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