Economics Oligopoly Questions
Price maintenance strategy in oligopoly refers to a practice where firms in an oligopolistic market collaborate to set and maintain a specific price for their products or services. This strategy involves agreements or understandings among the competing firms to avoid price competition and keep prices at a certain level. The purpose of price maintenance is to ensure stable and predictable pricing in the market, which can benefit the firms by reducing uncertainty and maintaining higher profit margins. However, price maintenance strategies can also lead to higher prices for consumers and potential antitrust concerns.