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There is a growing literature in industrial organization on the use of empirical screens to detect cartels. I discuss several methodological issues that have emerged from this literature, and explain why addressing these issues is important for gaining a better understanding of the power and...
Persistent link: https://www.econbiz.de/10012971080
We suggest a price signaling strategy that offers a microfoundation for the process leading to tacit collusion under multimarket contact, even in cases where previous theoretical explanations fail. It rests on the assumptions that firms can communicate collusive intentions solely through their...
Persistent link: https://www.econbiz.de/10013006153
successfully employed to discover the “Libor Scandal” much time before the opening of the cartel settlement procedure. Thus, the … London Metal Exchange, following the allegations according to which there would be an aluminium cartel behind. As a result …
Persistent link: https://www.econbiz.de/10012856714
We experimentally study the effect of information about competitors' actions on cartel stability and firms' incentives …
Persistent link: https://www.econbiz.de/10013022876
Corrigendum to “Are cartel fines optimal? Theory and evidence from the European Union.” The paper “Are cartel fines … optimal? Theory and evidence from the European Union” can be found at 'http://ssrn.com/abstract=2342180' http …
Persistent link: https://www.econbiz.de/10012994883
Research on cartel inspection has considered dynamic behaviors of firms but not of the regulator. The current paper … allows the antitrust authority to choose the level of cartel monitoring intensity and its dynamic patterns. Specifically, we … compare stationary monitoring policies with "switching" policies that randomize cartel detecting probabilities over time with …
Persistent link: https://www.econbiz.de/10013292819
This paper introduces an oligopoly model that includes three actors: a cartel (comprising two or more firms that … operate like one merged company), a group of competing fringe firms, and a welfare maximizing antitrust authority. The cartel …. The cartel is internally stable if none of its member firms finds it profitable to become a fringe firm. The antitrust …
Persistent link: https://www.econbiz.de/10013247115
Retailers may enjoy stable cartel rents in their output market through the formation of a buyer group in their input … or rebates. The stability of such an "implied cartel" depends on the retailers' incentives to secretly source from a …
Persistent link: https://www.econbiz.de/10009631585
This article studies dynamic pricing strategies in the Italian gasoline market before and after the market leader unilaterally announced its commitment to adopt a sticky-pricing policy. Using daily Italian firm level prices and weekly average EU prices, we show that the effect of the new policy...
Persistent link: https://www.econbiz.de/10009777053
The objective of this paper is to investigate the impact of R&D cooperation on cartel formation in the product market … the incentives to create a cartel in the product market. …
Persistent link: https://www.econbiz.de/10009782017