Pricing decisions are interrelated in oligopoly like Cargill Corp
T
estifying at a price fixing trial involving Cargill Corp. also the marketplace for chicken growth hormone, (in which the Cargill is one of only three industries worldwide), an executive for Perdue said: "It's an oligopoly. Whenever one (industry) changes price, they all do usually within minutes."
Elucidate why is it not surprising to find which in an oligopoly which sells a basically undifferentiated product like chicken growth hormone all the industries change prices simultaneously, even if there is no explicit price fixing?