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Monday, 28 November 2011

Unit 3: Tacit Collusion in the Supermarket

UK supermarkets are currently involved in 'price matching' and 'big price drop' schemes


On the surface the brand price match scheme shown in the picture below looks like a good deal for consumers in this time of financial hardship and distress.

But what if this ‘parallel pricing’ serves merely as a form of tacit collusion with prices on a range of products actually higher than they might be without the illusion of price comparisons and discount voucher compensation?

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