Legal Definitions - oligopolistic price coordination

Oligopolistic price coordination is when two or more businesses in a concentrated market intentionally engage in monopolistic conduct. This is also known as conscious parallelism or tacit collusion.

One example of oligopolistic price coordination is when two major airlines agree to keep their prices at the same level, even though they are supposed to be competing with each other. This can lead to higher prices for consumers and less competition in the market.

Another example is when two big companies in the same industry agree to divide up the market between them. For example, one company might agree to focus on selling their products in the eastern part of the country, while the other company focuses on the west. This can limit consumer choice and lead to higher prices.

These examples illustrate how oligopolistic price coordination can harm consumers by limiting competition and keeping prices artificially high. It is illegal under antitrust laws and can result in fines and other penalties for the companies involved.