A Multi Criteria Study of Collusion Risk Factors

Abstract

Market features can be considered as forerunners of the European Commission’s actions aimed at recognizing collusive behaviours. To identify information that might support the Commission in the exercise of its role of antitrust authority we propose a multi criteria approach. Its focus is on the manufacturing sector and the aim is also to prevent undesired behaviours. Market sector features, such as price-cost margin or market entrance rate, are linked to the likelihood of a collusive behaviour in the sector in terms of “implications rules” by means of Dominance-based Rough Set Approach. Data come from institutional sources concerning different manufacturing sectors from five countries (France, Germany, Italy, Spain and United Kingdom) from 2000 to 2010.

Keywords: collusion prevention, manufacturing sector, dominance based rough set approach, multi-criteria.

JEL Classification: M40