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We study the relationship between collusion and corruption in a stylized model of repeated procurement where the cost … suppliers alleviates free-riding in reporting. However, it also facilitates collusion in bidding by increasing the value of the … collusive rent. In turn, bidding collusion facilitates cooperation in reporting by increasing the value of having honest …
Persistent link: https://www.econbiz.de/10012697250
A number of recent papers have proposed that a pattern of isolated winning bids may be associated with collusion. In … contrast, others have suggested that bid clustering, especially of the two lowest bids, is indicative of collusion. In this …, whose asphalt industry has not been the subject of collusion allegations. Our findings provide causal evidence that the …
Persistent link: https://www.econbiz.de/10014091634
Vertical restraints, such as vertical integration, exclusive dealing contracts, and tying and bundling practices, have been subject of lively policy and academic discussions. Scholars associated with the Chicago School challenged early foreclosure doctrines by arguing that vertical restraints...
Persistent link: https://www.econbiz.de/10013036361
The Rule of Reason, which has come to dominate modern antitrust law, allows defendants the opportunity to justify their conduct by demonstrating “procompetitive” effects. Seizing the opportunity, defendants have begun offering increasingly numerous and creative explanations for their...
Persistent link: https://www.econbiz.de/10012853929
Motivated by recent antitrust cases, a hub-and-spoke collusive mechanism involving multiple downstream firms and their common upstream supplier is explored. To this end, I develop a repeated sequential game in which downstream firms receive private demand signals and send private messages to the...
Persistent link: https://www.econbiz.de/10014344897
Due to being much better documented, legal cartels have recently attracted the interest of many researchers who aim to understand the functioning of illegal cartels in detail. This paper contributes to the question of what we can learn from legal cartels by taking a closer look at the cement...
Persistent link: https://www.econbiz.de/10011334610
, collusion. …
Persistent link: https://www.econbiz.de/10011346282
We study the welfare effects of non-binding advance price announcements. Applying a differentiated Bertrand model with horizontal products and asymmetric information, we find that such announcements can help firms to gain information on each other thereby allowing them to achieve higher profits....
Persistent link: https://www.econbiz.de/10011316431
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Persistent link: https://www.econbiz.de/10010406293