Tacit Collusion

The last two decades have seen a significant amount of actual or alleged cartel conspiracies uncovered, particularly in the financial sector, such as the discovery of the LIBOR rigging and...

By Subhasish M. Chowdhury (University of Bath) We experimentally investigate the determinants of post-cartel tacit collusion (PCTC), the effects of PCTC on market outcomes, and potential policy measures aimed at its prevention. PCTC occurs robustly with or without fines or leniency and is determined both by collusive price hysteresis and learning about cartel partners’ characteristics […]

By John Moore, Etienne Pfister & Henri Piffaut Whether algorithms do increase the risk of tacit collusion remains very uncertain. Yet, if this is the case, the consequences for the effectiveness of regulation and of competition policy could be important and regulators need to think on how to make sure that this risk of algorithmic […]

Posted by Social Science Research Network Algorithmic Collusion & Its Implications for Competition Law and Policy By Kenji Lee Algorithms are increasingly employed by businesses as an integral part of their business models given the availability of big data and breakthroughs in artificial intelligence technology and application. While the competition landscape has shifted to a digital […]