priskoordination

Priskoordination, or price coordination, refers to the alignment of prices among firms in a market with the aim of reducing or eliminating price competition. It can occur through explicit agreements or through tacit coordination, where competitors coordinate behavior without direct contact or formal arrangements.

Forms of priskoordination include explicit price-fixing agreements or cartel arrangements, where firms set or maintain prices collectively. Tacit coordination involves mechanisms such as price leadership, parallel pricing, synchronized price changes, or signaling through capacity decisions, production cuts, or advertising to influence rivals’ pricing behavior. In practice, coordination may occur across product lines or geographic markets and can be facilitated by information sharing, common suppliers, or interdependence among firms.

Mechanisms and signals that support priskoordination often rely on market transparency, reputational concerns, and the expectation of mutual benefit from stable prices. Firms may monitor competitors’ price movements, align discounts or rebates, and use non-price signals to convey willingness to match or avoid aggressive price competition.

Effects on markets can include higher and more stable prices, reduced price volatility, and greater predictability for firms. Consumer welfare commonly declines due to higher costs and reduced output or innovation, though some interpretations emphasize potential efficiency gains from reduced destructive competition in certain settings. The overall impact depends on market structure, entry barriers, and enforcement.

Legally, explicit price coordination is typically prohibited under competition or antitrust laws in many jurisdictions. Tacit coordination is more difficult to prosecute but can still attract scrutiny if it substantially lessen competitive pressure. Enforcement involves investigations, market monitoring, and, in some cases, leniency programs for cooperating participants.