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We analyze the pricing behavior of firms when explicit partial cartels have formed in experimental markets through communication. Using a repeated, asymmetric capacity constraint price game, we show that, in line with theory, a partial cartel is sufficient to increase market prices for all...
Persistent link: https://www.econbiz.de/10011897162
policy. We address four core subject areas: market power, collusion, mergers between competitors, and monopolization. In each …
Persistent link: https://www.econbiz.de/10014023495
the literature in industrial economics neglects individuals' incentives to form cartels. Although oligopoly experiments … less inclined to collude than men when collusion harms a third party. No gender difference can be found in the absence of a … distance is small they hardly behave collusively when collusion harms a third party. …
Persistent link: https://www.econbiz.de/10012938866
This paper investigates the effects on tacit collusion of increased market transparency on the consumer side of a … underbutting the collusive price. It also decreases the punishment profit. The net effect is that collusion becomes harder to … for tacit collusion. …
Persistent link: https://www.econbiz.de/10011409987
Before there was Hipster antitrust there was Woodstock antitrust. Flourishing in the decade from 1969 to 1979, Woodstock antitrust sought to take on the central issues in antitrust. Looking back we can see a program of enforcement and proposed legislation that constituted a radical effort to fix...
Persistent link: https://www.econbiz.de/10012918944
This paper explores the use of collusion theories in merger analysis at the Federal Trade Commission. The 1992 Merger … Guidelines focuses on unilateral effect, relegating collusion analysis to a second tier theory. Both structural and behavioral … found to increase the likelihood of a collusion finding. Standard structural concerns are readily identified, while …
Persistent link: https://www.econbiz.de/10014222696
This paper presents an overview of what economists can say about vertical constraints by multi-sided platforms at this stage in the development of our knowledge about the economics of these businesses. It describes the general procompetitive and anticompetitive uses of vertical restraints by...
Persistent link: https://www.econbiz.de/10014162200
Complexity science is widely used across the policy spectrum but not in antitrust. This is unfortunate. Complexity science enables a rich understanding of competition beyond the simplistic descriptions of markets and firms proposed by neoclassical models and their contemporary neo-Brandeisian...
Persistent link: https://www.econbiz.de/10013296286
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
A usual assumption in the theory of collusion is that cartels are all-inclusive. In contrast, most real-world collusive …
Persistent link: https://www.econbiz.de/10011761059