Question

Why would a firm choose to use one or more of the anticompetitive practices described in Regulating Anticompetitive Behavior?

Short answer

Since outright collusion is illegal for firms, a firm will choose to engage in one or more anticompetitive practices.

Step-by-step solution

Definition

Anti-competitive practices are actions taken by business people, authorities, or religious organizations to avoid competition in a market.

Explanation

Since outright collusion is illegal for firms, a firm will choose to engage in one or more anticompetitive practices. As a result, they would prefer to use other regulatory-based approaches. Existing regulations contain grey areas that businesses may be able to exploit. As businesses seek new ways to make money and government officials determine what is and is not permissible, the concept of restrictive practices evolves.