Next, Director and Levi briefly turned to the application of the idea of collusion. With regard to collusion, Director and Levi focused primarily on the issue of price-fixing agreements. They acknowledged that when price fixing occurs among members of an industry that control a large market share in terms of sales, the adverse consequences for the market can be predicted with some certainty. However, when price fixing occurs among firms with an insignificant combined market share, “there is less foundation for [illegality]” (p. 295).

Philip Mirowski & Dieter Plehwe (eds.), The Road from Mont Pèlerin, loc. 1145