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Corporate competion – The daily blog of behavioral and cognitive economics

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Corporate competion – The daily blog of behavioral and cognitive economics

A Toothpaste Tube Problem

Rewinding to the late 19th century, we would have seen a problem with corporate cooperation. To minimize the competition that elevated prices, together, large businesses firms decided what to charge us. Then though, the Sherman Antitrust Act proclaimed in 1890 that it was illegal to act “in restraint of trade.” Preserving competition, the Sherman Act prevented corporate collusion. But is collusion always bad? ….[READ]

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