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Author Question: Suppose there are two firms maintaining a cartel agreement. If one firm suddenly drops its price, ... (Read 82 times)

Mimi

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Suppose there are two firms maintaining a cartel agreement. If one firm suddenly drops its price, the other firm could interpret this as signaling:
◦ cartel pricing.
◦ limit pricing.
◦ cooperative pricing.
◦ a change in market conditions.


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Marked as best answer by Mimi on Jul 20, 2019

dajones82

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