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If it's organized, but what if it's just an unspoken rule in the industry? The result would be an unchanging status que with little innovation.

If this were true I'd expect to see industries where innovation usually comes from new companies in the market. The existing companies have stopped trying, stopped competing, and thus you only see innovation from new companies. Do we see this pattern often?

My point is the number of competitors is less important than how easy it is for new competitors to enter.



I agree, but I'm not sure how that relates.


You said it's illegal, and I claimed it happens all the time, that's how it relates.


Sorry, I still don't quite follow. Can you give an example of companies ceasing competition for mutual benefit?




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