There are three major suppliers of highly specialized industrial chemicals in Canada. They have all operated for many years, and they respect each other and the quality of their products. They recognize that the market, while profitable, is finite, and that for each to survive, none can assume a greater market portion than currently held. For many years, it has been accepted that when calls for supplies are made by various industries, Company A will respond for western Canada, Company B for Ontario, and Company C for Quebec and the Maritimes.
Recently, purchasers from these suppliers have been questioning why, of all supplies purchased, these chemicals are subject to the least price fluctuation. They have learned from employees of A, B, and C of the arrangement. What are the implications for A, B, and C, their employees, and their customers?