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Figure 11

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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
Updated September 17, 2015