The offerer dilemma is a social dilemma between competitive offerers of goods in connection with price-fixing arrangment.

Here is assumed an offerer will lose numerous of his customers at the competitors, as soon as he would increase the prices. Thus it would have thus a disadvantage.

If the offerers would increase however both at the same time the prices, then both only some customers would lose, i.e. those, which did by the increased prices without consumption. However no customers would change to the competition. A price-fixing arrangment between the offerers could bring them therefore in principle Monopolpreise. All offerers would profit.

The competition adjustment tries to suppress artificially an offerer dilemma, about by forbidding price-fixing arrangments.

Articles in category "Offerer dilemma"

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