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Strategic Use of Public Price Indexes as a Collusive Device

BY | July 27, 2023

While public price indexes are widely used for the purpose of increasing market efficiency through information transmission, they can also be used strategically with an anti-competitive purpose. The mechanisms vary,…

While public price indexes are widely used for the purpose of increasing market efficiency through information transmission, they can also be used strategically with an anti-competitive purpose. The mechanisms vary, such as submitting false price reports, targeting a segment of the market that influences the index, or designing the price index to ease manipulation. A price index can be particularly vulnerable to potential anti-competitive actions when long-term contracts are pegged to the index,

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