Editing Cross elasticity of demand (section)

==== Alliances and collusion ====
Competitors may pool resources to create a joint alliance, such as [[Sony-Ericsson]] in October of 2001. [[Sony Electronics|Sony]] had a share of less than 1% in the mobile phone market; while Ericsson was the third largest market share holder. Unfortunately, [[Ericsson]] relied heavily on a single supplier, and when a fire broke out at a [[Royal Philips Electronics|Phillips]] factory, Ericsson couldn't fulfill their orders. Sony wanted a greater market share and Ericsson wanted to avoid going out of business, hence the Sony-Ericsson joint venture was formed.<ref>{{cite web |title=History of sony ericsson as a company |url=https://www.auessays.com/essays/business/history-of-sony-ericsson.php |website=AUEssays.com |access-date=26 April 2021 |language=en}}</ref>

Firms entering into a price fixing agreement in order to avoid [[price wars]] means they are involved in a [[collusion]]. The chances of collusion to occur is higher in markets with few competitors such as [[Oligopolistic|oligopolistic markets]]. It is illegal according to [[antitrust laws]], even though collusive agreements may be implicit, its implication with cartels are the same.