In recent years, several global pharmaceutical manufacturers of generic medications have been heavily penalised by competition regulators for conspiring to artificially inflate prices and divide market territories for essential generic drugs, including treatments for diabetes and skin conditions. The investigation revealed that executives used encrypted messaging applications and secret meetings at trade conferences to coordinate pricing strategies and avoid competitive bidding.
With reference to an industry of your choice, evaluate the reasons why firms in oligopolistic markets engage in collusive behaviour.
40 exam-style questions on Edexcel A A Level Economics 3.4.4 Oligopoly. Each one has a worked solution and a mark scheme showing where the marks go.