competition. They do exchange information, but just
to get a feel for what others are doing.’
Questions
1 If a group of schools simultaneously raises
their fees by a similar amount, is this evidence of
collusion? What other explanation might be
possible?
2 If fees have risen much faster than the rate of
inflation, 56 per cent over a decade, is this evidence
of collusion, or are other explanations possible?
3 Describe the factors that are favourable to the
formation of a successful cartel, and those that are
unfavourable, for the elite private schools
mentioned in the article. Use the statements in
quotations as evidence.