One of the most famous collusion cases in the United States involved some very unusual conspiracy methods. In 1960, an extensive pricing and market sharing scheme was discovered involving heavy electrical equipment such as transformers, turbines, circuit breakers, and switchgear. Participants such as General Electric, Westinghouse, and Allis-Chalmers had developed elaborate covert schemes to manipulate prices and divide the market. Consider switching equipment:

At regular meetings, the defendant corporations used a scheme or formula to quote nearly identical prices to electric utility companies, private industrial corporations, and contractors, designated by their representatives as a “moon phase” or “moonlight” formula. . Through the cyclical rotational positioning inherent in the formula, one defendant corporation would quote the low price, others would quote intermediate prices, and another would quote the high price; these positions would rotate periodically among the defendant corporations... This formula was designed to allow each defendant corporation to know the exact price it and all other defendant corporations would quote on each potential sale.

At these periodic meetings, a cumulative list of sealed bid business secured by all defendant corporations was also distributed and representatives present would compare the relative position of each corporation based on their agreed upon percentage of total sales pursuant to the sealed bids. The representatives present would then discuss future invitations to bid and designate which defendant corporation should submit the lowest bid, thus the amount of such bid and the bid amounts to be submitted by the others. 

Using the above story as an example, explain how this illustrates a possible collusive agreement and what, specifically, about this behavior would lead to the development of oligopolistic price-product behavior by the companies involved.