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Figure 11
Characteristics of Markets Prone to Oligopolistic Coordination
- Few significant firms
- High barriers to entry
- Market transparency
- Homogeneous goods
- Symmetry of costs
- Symmetry of market shares
- Low rate of product or process innovation
- Mature market
- Inelastic demand
- Structural links
- Repeated interaction
- Multimarket contacts
- Past pattern of coordination
- Presence of fringe firms or mavericks capable of expanding production
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