COLLUSION AND PRICE DISPERSION

John Connor ()

No 04-14, Working Papers from Purdue University, College of Agriculture, Department of Agricultural Economics

Abstract: While there are suggestions in applied cartel studies that price dispersion changes when cartelization of a market occurs, there are few theoretical or empirical analyses of this effect. This paper surveys the thin economic literature on the link between overt collusion and price dispersion. Formal theories and observation of cartel behavior suggest that during successfully collusive periods prices become less variable and more negatively skewed compared to relatively competitive periods. Four empirical studies of cartels verify these predictions.

Keywords: collusion; cartel; price dispersion (search for similar items in EconPapers)
JEL-codes: D43 L11 L13 L41 (search for similar items in EconPapers)
Pages: 9 pages
Date: 2004
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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http://ageconsearch.umn.edu/bitstream/28639/1/sp04-14.pdf (application/pdf)

Related works:
Journal Article: Collusion and price dispersion (2005)
Working Paper: Collusion and Price Dispersion (2004)
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Persistent link: https://EconPapers.repec.org/RePEc:pae:wpaper:04-14

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