What is the difference between overt and covert collusion's?

Answer 1

Overt collusion is where firms in an oligopoly formally set a price together, (usually high to maximize profits). This is usually done in secret because its illegal in most countries, but the main characteristic is that it is formal.

I believe overt collusion is where on firm in an oligopoly reacts to a price drop in another firms from that oligopoly. For instance a competing firm drops there price from £1 to 50p, the other firms will have to otherwise they will lose profits, allthoufh this is bad for all firms because everybody loses potential profits.

Am still researching this though so not 100% on overt collusion.