The Pro-collusive Effect of Increased Cartel Detection Probabilities

Jeroen Hinloopen

No 04-117/1, Tinbergen Institute Discussion Papers from Tinbergen Institute

Abstract: An increase in cartel discovery probability due to irregular price movements that result from cartel defection is shown to increase cartel stability as short-run defection profits are less likely to be earned.

Keywords: cartel stability; detection probabilities; defection incentives (search for similar items in EconPapers)
JEL-codes: L12 L41 (search for similar items in EconPapers)
Date: 2004-11-03
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Persistent link: https://EconPapers.repec.org/RePEc:tin:wpaper:20040117

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