Collusion

Collusion
A non-competitive agreement between rivals that attempts to disrupt the market's equilibrium. By collaborating with each other, rival firms look to alter the price of a good to their advantage. The parties may collectively choose to restrict the supply of a good, and/or agree to increase its price in order to maximize profits. Groups may also collude by sharing private information, allowing them to benefit from insider knowledge.

Collusion involves people cooperating or working together when they should be competing. In the stock market, collusion can take many forms. Traders participating in accommodation trading, where goods are exchanged for non-competitive prices, are involved in collusion.
Colluding traders might share private information regarding upcoming takeovers, allowing them to benefit from insider trading. Price rigging also involves the collusion of sellers, who inflate the price of an asset to realize higher profits.


Investment dictionary. . 2012.

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Synonyms:
, / (for fraud),


Look at other dictionaries:

  • collusion — [ kɔlyzjɔ̃ ] n. f. • 1321; lat. collusio, de colludere, de ludere « jouer » ♦ Entente secrète au préjudice d un tiers. ⇒ complicité, connivence. Ce syndicat dénonce la collusion entre le patronat et le gouvernement. Collusion avec qqn. ●… …   Encyclopédie Universelle

  • collusion — col·lu·sion /kə lü zhən/ n: the act or an instance of colluding col·lu·sive / siv/ adj Merriam Webster’s Dictionary of Law. Merriam Webster. 1996 …   Law dictionary

  • Collusion — Col*lu sion, n. [L. collusio: cf. F. collusion. See {Collude}.] 1. A secret agreement and cooperation for a fraudulent or deceitful purpose; a playing into each other s hands; deceit; fraud; cunning. [1913 Webster] The foxe, maister of collusion …   The Collaborative International Dictionary of English

  • collusion — col‧lu‧sion [kəˈluːʒn] noun [uncountable] when people or businesses share information or secretly make arrangements among themselves to get an unfair advantage: • an investigation into alleged collusion among art dealers • The Wall Street… …   Financial and business terms

  • collusion — COLLUSION. subs. f. Intelligence secrète entre deux ou plusieurs parties au préjudice d un tiers. Collusion secrète. Collusion visible, manifeste. On voit bien qu il y a collusion entre eux, qu il y a de la collusion. [b]f♛/b] Il se dit aussi De… …   Dictionnaire de l'Académie Française 1798

  • collusion — Collusion. s. f. v. Intelligence secrete entre deux personnes qui font procedures simulées au prejudice d un tiers. Collusion secrete. collusion visible, manifeste. on voit bien qu il y a collusion entre eux. Il s estend aussi à toute… …   Dictionnaire de l'Académie française

  • Collusion (EP) — Collusion EP by This Is Menace Released 2005 Genre Metalcore Metal Length 13:10 …   Wikipedia

  • collusion — late 14c., from O.Fr. collusion, from L. collusionem (nom. collusio) act of colluding, from colludere, from com together (see COM (Cf. com )) + ludere to play, from ludus game (see LUDICROUS (Cf …   Etymology dictionary

  • Collusion — ist: im engeren Sinne ein Begriff beim Pokern, siehe Liste von Pokerbegriffen#C im weiteren Sinne die englische Schreibweise des Begriffs Kollusion Diese Seite ist eine Begriffsklärung zur Unterscheidung mehrerer mit demse …   Deutsch Wikipedia

  • Collusion — (v. lat.), eine von zwei od. Mehreren, nach betrüglicher Verabredung, zum Nachtheil eines Anderen, unter verstelltem Vorwande unternommene Handlung Im Strafprocesse hat der Richter, um Collusionen zwischen Zeugen u. Angeschuldigten od. auch… …   Pierer's Universal-Lexikon

  • collusion — A secret agreement and co operation for a fraudulent or deceitful purpose. (Dictionary of Canadian Bankruptcy Terms) United Glossary of Bankruptcy Terms 2012 …   Glossary of Bankruptcy

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