ABSTRACT
The analysis of market conduct is the next level of evaluation in the investigation of the competitiveness and efficiency of the fuelwood market system in Tanzania. Conduct of participants in the market system refers to their behavioural aspects. The way that prices are set by sellers, and the degree of market and price communication among sellers are parameters in the determination of competitiveness. The larger firewood sellers in Dar es Salaam and Shinyanga are more likely than the small sellers in Mbeya to lower their prices. Price matching is especially common among firewood sellers and charcoal sellers in Mbeya, and price collusion is particularly prevalent among Mbeya firewood sellers. Charcoal retailers in Mbeya are more likely than those in the other cities to set their prices based on either other sellers' prices or in collusion with other sellers. Unlike charcoal sellers, few firewood sellers lower their prices due to reduced costs for themselves.
