Interdependent pricing in concentrated markets produces parallel behavior without agreement. Twombly held that parallel conduct alone does not plausibly suggest conspiracy, requiring additional factual allegations.
Plus factors distinguish agreement from independent action.
Alternative Names:
Conscious Parallelism|Parallel Behavior
Why it Matters?
Twombly makes parallel conduct pleading insufficient at the motion to dismiss stage, which is a substantial procedural defense since antitrust discovery is enormously expensive and dismissal avoids it entirely. Establishing that the parallel behavior was economically rational independently, through market structure and pricing incentives, is the substantive response. Oligopoly markets naturally produce interdependent pricing without any communication.
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Frequently asked questions
What did Twombly establish?
What is the substantive response?
