The doctrine of collective dominance is derived from the belief that a concentrated market structure leads to higher prices and higher profits for all firms in that market because it reduces the effectiveness of competition. This doctrine does not imply or require that any particular firm enjoy identifiable market power. Nor does it imply or require that the firms in question collude or co-ordinate their behavior. It is enough for collective dominance that firms watch each other sufficiently carefully to recognize the mutual interdependence of their behavior.
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