Question:
Testifying at a price fixing trial involving Cargill and the market for chicken growth hormone, in which Cargill is one of only three firms worldwide, an executive said: "It's an oligopoly. When one firm changes price, they all do... usually within minutes."
Why is it not surprising to find that in an oligopoly which sells a basically undifferentiated product like chicken growth hormone, all the firms change prices simultaneously, even if there is no explicit price fixing?