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Full Description
Collusion remains a strong undercurrent of business practice despite anti-cartel enforcement being a top priority of competition authorities. Alongside active prosecution of cartels, the study of cartels is a vibrant area of research for economic and legal scholars. A challenge for both practice and scholarship is that cartels evolve, as colluding firms continuously devise new methods to circumvent competition. Cartels Diagnosed presents twelve gripping cartel case studies of collusion from key business sectors such as the airline industry, the gasoline industry, and big pharma. Written by renowned economists, these concise and accessible case studies deliver novel insights into cartel formation, facilitating practices, cartels' modus operandi, and the efficacy of cartels. Assisting in understanding new cartel mechanisms and their effects, developing new policies to deter and destabilize cartels, and measuring harm, this volume on cartel morphology is an invaluable reference for supporting public and private enforcers in detecting and prosecuting cartels.
Contents
Introduction; 1. Entry barriers, personal relationships, and cartel formation: generic drugs in the United States Emily Cuddy, Robert H. Porter, Amanda Starc and Thomas G. Wollmann; 2. 'Now you are asking for a real war!' A case study on internal stability in a cartel in the private alarm market in Norway Kurt Brekke and Lars Sørgard; 3. The international air cargo cartel Zhiqi Chen; 4. The difference between price fixing and fixing competition: the Israeli 'Bread Cartel' Chaim Fershtman and Yossi Spiegel; 5. Informed sources and the role of platforms for facilitating anticompetitive communication David P. Byrne, Nicolas de Roos, A. Rachel Grinberg and Leslie M. Marx; 6. 'Collusion with non-express communication: retail gasoline in Norway' Joseph E. Harrington, Jr.; 7. Price wars: evidence from Quebec's retail gasoline industry Robert Clark, Marco Duarte and Jean-François Houde; 8. Coordinated rebate reductions and semi-collusion in the Swedish gasoline market Frode Steen and Lars Sørgard; 9. Predicting and preventing cartels in price-linked markets: the case of average bid auctions Francesco Decarolis; 10. The economics of the LCD cartel: organization, incentives, and practical challenges Dennis Carlton, Mark Israel, Ian MacSwain and Allan Shampine; 11. The Spanish raw tobacco cartel Thilo Klein, Helder Vasconcelos and Elena Zoido; 12. Price parallelism in the Greek steel market: evidence of a false cartel accusation Yannis Katsoulacos and Marc Ivaldi.
