The three main luxury hotels in a major tourist destination keep very close track of their competitors' room pricing, restaurant offerings, tour packages, and special services, such as airport transportation and spa privileges. When one hotel makes adjustments in prices or offerings, the other hotels follow suit. It is possible that these hotels are
a. engaging in tacit collusion.
b. following uncertainty reducing strategies.
c. monitoring business competitors for opportunistic behaviors.
d. following a competitive response strategy.
Answer: engaging in tacit collusion.