Common use of Collusion Clause in Contracts

Collusion. Collusion happens when two or more clients conspire to artificially decrease the reputation of a provider, and thus decrease the price they have to pay for the service. The reputation side-payments do not make it interesting for one client to submit negative feedback, however, when several clients form a coalition and adopt a negative reporting strategy, the price-cut is cumulative and every agent benefits from the action of the group. The use of trusted reports (as described in Section 4.1) also xxxxxx collusion. When clients are self-interested and external punishments cannot be inflicted on them, we prove that any feedback-reporting coalition is unstable, and hence, irrational.

Collusion. Collusion happens when two or more clients conspire to artificially artificially decrease the reputation of a provider, and thus decrease the price they have to pay for the service. The reputation side-payments do not make it interesting for one client to submit negative feedback, however, when several clients form a coalition and adopt a negative reporting strategy, the price-cut is cumulative and every agent benefits benefits from the action of the group. The use of trusted reports (as described in Section 4.1) also xxxxxx collusion. When clients are self-interested and external punishments cannot be inflicted inflicted on them, we prove that any feedback-reporting coalition is unstable, and hence, irrational.