Dictionary Meaning and Definition on 'Collude'
v : act in unison or agreement and in secret towards a deceitful
or illegal purpose; "The two companies conspired to cause
the value of the stock to fall" [syn: conspire]
- Collude \Col*lude"\, v. i. [imp. & p. p. Colluded; p. pr. &
vb. n. Colluding.] [L. colludere, -lusum; col- + ludere to
play. See Ludicrous.]
To have secretly a joint part or share in an action; to play
into each other's hands; to conspire; to act in concert.
If they let things take their course, they will be
represented as colluding with sedition. --Burke.
Wikipedia Meaning and Definition on 'Collude'
Collusion is an agreement between two or more persons, sometimes illegal and therefore secretive, to limit open competition by deceiving, misleading, or defrauding others of their legal rights, or to obtain an objective forbidden by law typically by defrauding or gaining an unfair advantage.
In the study of economics and market competition, collusion takes place within an industry when rival companies cooperate for their mutual benefit. Collusion most often takes place within the market structure of oligopoly, where the decision of a few firms to collude can significantly impact the market as a whole. Cartels are a special case of explicit collusion. Collusion which is not overt, on the other hand, is known as tacit collusion.
According to neoclassical price-determination theory and game theory, the independence of suppliers forces prices to their minimum, increasing efficiency and decreasing the price determining ability of each individual firm. However, if firms collude to increase prices loss of sales is minimized as consumers lack alternative choices at lower prices. This benefits the colluding firms at the cost of efficiency to society.[See more about Collude at Dictionary 3.0 Encyclopedia]