How can a cartel use bid rigging to influence the market?

1 Answer
SCooke
Mar 23, 2016

When the “supply” side of resources is at an artificially set point the “demand” side cannot create market adjustments.

Explanation:

It is a form of “price fixing” through an agreement to bid within only a limited range of prices for particular projects. When the “supply” side of resources is at an artificially set point the “demand” side cannot create market adjustments.

Related questions
See all questions in Interdependence, collusion, and cartels
Impact of this question
1282 views around the world
You can reuse this answer
Creative Commons License