The Pro-Collusive Effect of Increased Cartel Detection Probabilities

Hinloopen, Jeroen

doi:10.2139/ssrn.617247

Download This Paper

Open PDF in Browser

Add Paper to My Library

The Pro-Collusive Effect of Increased Cartel Detection Probabilities

Tinbergen Institute Discussion Paper No. TI 2004-117/1

8 Pages Posted: 15 Nov 2004

See all articles by Jeroen Hinloopen

Jeroen Hinloopen

CPB Netherlands Bureau of Economic Policy Analysis; University of Amsterdam - Amsterdam School of Economics (ASE); Tinbergen Institute

Date Written: November 2004

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

JEL Classification: L12, L41

Suggested Citation: Suggested Citation

Hinloopen, Jeroen, The Pro-Collusive Effect of Increased Cartel Detection Probabilities (November 2004). Tinbergen Institute Discussion Paper No. TI 2004-117/1, Available at SSRN: https://ssrn.com/abstract=617247 or http://dx.doi.org/10.2139/ssrn.617247