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Presented by
Deepa Chandrasekar IIPM Gurgaon
Cooperative Oligopoly
When there are only small number of firms Non
Cooperative & Cooperative behaviour .
Firms operate in a cooperative mode when they
try to control competition
They engage in collusion.
Two or more firms jointly set prices
G
P1
Average Cost
P
E MR=MC
Total Demand
Of the Industry
Marginal Revenue
Q Output
Same Hike On Same Day!
GSM operators
Bharti Airtel,
Vodafone
Essar and Idea
Cellular for
allegedly
forming a
cartel .
GSM Operators get slammed
for forming cartel
They all fixed the tariff of their local call at Rs 1.20 a
minute…
Tariff hike targeted especially at low-end users
indicates the operator’s concern about declining
ARPUs.
Consumer groups, however, pointed out that the
operators have not given any publicity to the
increase in tariffs to create awareness among
users.
Coincidences……
The telcom operators
increased the tariff of their
local call at Rs 1.20 a
minute…
All the three operators
revised the tariff rates on
the same date
All the operators intimated
the TRAI post revision on
same day (i.e. August 16,
2007).
Free to Fix any Tariff
TRAI refused to intervene in this cartel as
GSM operators are free to fix any tariff for
their services
“But it can not be mere coincidence” that the
tariff revision by them is of the identical
scale.”
The MRTPC Bench directed the three
companies to give explanation.
Cartel in union for 17 years
Truckers’
strike hit the
nation in late
2008
Cartelisation in Aviation industry
DeepaChandrasekar