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intr.v. colÂ·ludÂ·ed, colÂ·ludÂ·ing, colÂ·ludes. To act together, often in secret, to achieve an illegal or improper purpose: The managers and the union leaders regularly colluded to rob the plantations at the expense of the workers (Daniel Wilkinson). [Latin collÅ«dere : com-, com- + lÅ«dere, to play; see leid- in Indo-European roots.]
Definition [edit]. In the study of economics and market competition, collusion takes place within an industry when rival companies cooperate for their mutual benefit. Collusion most often takes place within the market structure of oligopoly, where the decision of a few firms to collude can significantly impact the market as a whole. Cartels are a special case of explicit collusion.