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A Variance Screen for CollusionRosa M. Abrantes-MetzGlobal Economics Group, LLC; New York University - Leonard N. Stern School of Business - Department of Economics Christopher T. TaylorU.S. Federal Trade Commission - Bureau of Economics Luke FroebVanderbilt University - Strategy and Business Economics John GewekeUniversity of Technology Sydney - Economics Discipline Group March 2005 Vanderbilt Law and Economics Research Paper No. 05-13; FTC Bureau of Economics Working Paper No. 275 Abstract: In this paper, we examine price movements over time around the collapse of a bid-rigging conspiracy. While the mean decreased by sixteen percent, the standard deviation increased by over two hundred percent. We hypothesize that conspiracies in other industries would exhibit similar characteristics and search for "pockets" of low price variation as indicators of collusion in the retail gasoline industry in Louisville. We observe no such areas around Louisville in 1996-2002.
Number of Pages in PDF File: 27 Keywords: Collusion, Price Fixing, Firms, Firm JEL Classification: L12, L41, D40 working papers seriesDate posted: April 7, 2005Suggested CitationContact Information
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