price collusion

Price collusion occurs when competing businesses secretly agree to set their prices at a certain level rather than competing freely. This behavior reduces competition and can lead to higher prices for consumers. Firms might align their prices, production costs, or output levels to increase profits collectively, often avoiding the natural market forces of supply and demand. Price collusion is illegal in many countries because it harms consumer choice, stifles innovation, and undermines fair competition. It typically involves trust and secrecy, with businesses covertly coordinating to maintain artificially high prices.