Economics A-Level
Collusion
What Collusion means in Economics A-Level, as defined for AQA.
Definitions of Collusion
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Reference: AQA
An anti-competitive and usually illegal practice where firms conspire to restrict competition, typically by fixing prices, limiting output, or dividing markets.
A form of firm behaviour that counts as a conduct indicator, alongside pricing strategies such as limit pricing and non-price competition such as advertising.
An agreement between oligopolists to restrict competition, such as through price fixing or output quotas.
Topics that use Collusion
- Market structure, static efficiency, dynamic efficiency (AQA A-Level)
- Oligopoly (AQA A-Level)
Related terms
- Dynamic efficiency
- Allocative efficiency
- Barriers to entry
- Capital investment
- Cartel
- Cartels
- Concentration ratio
- Concentration ratios
Using Collusion in the exam
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