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A model-based derivation of an effective antitrust policy requires an economic framework that includes three actors: a cartel, a group of competing fringe firms, and a welfare maximizing antitrust authority. In existing models of cartel behavior, at least one of these actors is always missing....
Persistent link: https://www.econbiz.de/10012425162
This paper analyzes the inner workings of cartels. To understand how sanctioning institutions prevent cartel formation we study their effect on firms' communication in a laboratory experiment. Using machine learning to organize the chat communication into topics, we find that firms are less...
Persistent link: https://www.econbiz.de/10013332300
We provide a theory of how RPM facilitate upstream cartels absent any information asymmetries using a model with … manufacturers if they collude. We thus provide a novel theory of harm for resale price maintenance when manufacturers collude and … illustrate the fit of this theory in various competition policy cases. …
Persistent link: https://www.econbiz.de/10012438202
We provide a novel explanation for why manufacturers want to enforce a minimum resale price (min RPM) on retailers. A manufacturer sells her good via a multi-product retailer to final consumers by charging a linear wholesale price. The manufacturer then maximizes her profit through min RPM...
Persistent link: https://www.econbiz.de/10013328108
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The algorithm driven conduct of platform operators, as the expert handlers of big data, is starting to challenge the way in which competition law needs to be enforced. Businesses, especially platform operators, acquire data and particularly pricing information from other businesses in real-time....
Persistent link: https://www.econbiz.de/10011737911
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The part of the economy that depends, directly or indirectly, fully or partially, on the flow and analysis of data is growing of importance2. Data-driven businesses are spilling over from the online to the offline economy, changing traditional industries. They are set to become pervasive in the...
Persistent link: https://www.econbiz.de/10011991001
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