| Collusive Oligopoly and the formation of Cartels. | | | | in a tacit way. A formal agreement is one when |
| By Paramantapa Dasgupta | | | | the oligopolists agree after discussion to observe |
| In one of my previous articles, Iâve tried | | | | certain common rules of conduct in regard to |
| to portray that Uncertainty is the most important | | | | price and output determination. So this kind of an |
| factor in the studies of Oligopoly.( | | | | oligopolistic situation is generally termed as |
| So, due to its own virtue, setting prices | | | | Collusive Oligopoly. But more often we find that |
| independently is very rare or almost non-existent | | | | the agreement between the firms is a tacit one, |
| in the oligopolistic markets. Some kind of | | | | as in most of the countries a formal or open |
| understanding between the firms arises, may be | | | | agreements to form monopolies are illegal. |
| either in the form of a formal agreement or even | | | | |