Coordination in the fight against collusion
Elisabetta Iossa,
Simon Loertscher,
Leslie M. Marx and
Patrick Rey
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Leslie M. Marx: Duke University [Durham]
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Abstract:
While antitrust authorities strive to detect, prosecute, and thereby deter collusive conduct, entities harmed by that conduct are also advised to pursue their own strategies to deter collusion. The implications of such delegation of deterrence have largely been ignored, however. In a procurement context, we find that buyers may prefer to accommodate rather than deter collusion among their suppliers. We also show that a multi-market buyer, such as a centralized procurement authority, may optimally deter collusion when multiple independent buyers would not, consistent with the view that "large" buyers are less susceptible to collusion.
Keywords: Reserves; Sustainability and initiation of collusion; Coordinated effects (search for similar items in EconPapers)
Date: 2024-02
New Economics Papers: this item is included in nep-com, nep-cta, nep-ind, nep-law, nep-mic and nep-reg
Note: View the original document on HAL open archive server: https://hal.science/hal-04459042v1
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Citations:
Published in American Economic Journal: Microeconomics, 2024, 16 (1), pp.224-261. ⟨10.1257/mic.20220194⟩
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Related works:
Journal Article: Coordination in the Fight against Collusion (2024) 
Working Paper: Coordination in the Fight Against Collusion (2023) 
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-04459042
DOI: 10.1257/mic.20220194
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