Collusion is an agreement, usually secretive, which occurs between two
or more persons to deceive, mislead, or defraud others of their legal
rights, or to obtain an objective forbidden by law typically involving
fraud or gaining an unfair advantage. It can involve "wage fixing,
kickbacks, or misrepresenting the independence of the relationship
between the colluding parties."[1] All acts affected by collusion are
considered void.[2]
In the study of economics and market competition, collusion takes place within an industry when rival companies cooperate for their mutual benefit. Collusion most often takes place within the market form of oligopoly, where the decision of a few firms to collude can significantly impact the market as a whole. Cartels are a special case of explicit collusion. Collusion which is not overt, on the other hand, is known as tacit collusion.
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