Wednesday, May 28, 2008
Posted by D. Daniel Sokol
Oxera has a briefing paper on tacit collusion titled When is Retaliation Effective and Credible for Tacit Collusion?
ABSTRACT: Retaliation against cheaters is an important condition for tacit collusion or coordination between rival companies to be sustainable. The assessment of retaliation mechanisms is therefore a key stage in testing for coordinated effects in merger inquiries or other types of competition investigation where tacit collusion decisions may be of concern. In what circumstances are these mechanisms effective and credible?