Why is collusion between competitors illegal?
Collusion between competitors could lead to price fixing, because this would eliminate the competition. They could all agree to set a price at a fixed amount and we would have to pay it. It would essentially eliminate the entire supply and demand theory because they could set the price at whatever they wanted and consumers would have no other choice. Without the competition, there would be chance of getting a lower price and consumers would be stuck paying the higher price.
