Editing Collusion (section)

==Government intervention==

Collusion often occurs within an [[oligopoly]] market structure, which is a type of [[market failure]]. Therefore, natural market forces alone may be insufficient to prevent or deter collusion, and government intervention is often necessary.

Fortunately, various forms of government intervention can be taken to reduce collusion among firms and promote natural market competition.

* Fines and imprisonment to companies that collude and their executives who are personally liable.
* Detect collusion by screening markets for suspicious pricing activity and high profitability.
* Provide immunity (leniency) to the first company to confess and provide the government with information about the collusion.<ref>{{cite web |url=https://www.economicshelp.org/blog/164535/economics/government-policies-to-reduce-collusion/ |title= Government policies to reduce collusion |last=Pettinger |first=Tejvan|date= July 2020 }}</ref>