The less competition there is in a market, the less incentive companies have to reduce their profit margins to gain market share. Antitrust legislation is typically used to ban cartels, but with so few market participants, the need to collaborate in fixing prices is lessened.
The less competition there is in a market, the less incentive companies have to reduce their profit margins to gain market share. Antitrust legislation is typically used to ban cartels, but with so few market participants, the need to collaborate in fixing prices is lessened.