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Economic indicators for the presence of tacit collusion in merger control under varied focal points

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  • Proctor, Adrian

Abstract

This article discusses how different focal points in a market can lead to different collusive agreements and how merger analysis can identify markets that may be vulnerable to these potential agreements. Focal points based on customer allocation and geographic markets are considered with recent UK examples of this type of analysis. The focal point firms are using for coordination can affect the transparency required to maintain coordination and how targeted or effective any punishment for deviation can be.

Suggested Citation

  • Proctor, Adrian, 2013. "Economic indicators for the presence of tacit collusion in merger control under varied focal points," MPRA Paper 64964, University Library of Munich, Germany, revised Mar 2014.
    • Handle: RePEc:pra:mprapa:64964
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    References listed on IDEAS

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    1. repec:dau:papers:123456789/13637 is not listed on IDEAS
    2. Fonseca, Miguel A. & Normann, Hans-Theo, 2012. "Explicit vs. tacit collusion—The impact of communication in oligopoly experiments," European Economic Review, Elsevier, vol. 56(8), pages 1759-1772.
    3. Francesca Sala & Pietro Crocioni & Julie Bon, 2013. "There is Always a First Time: Coordinated Effects via Vertical Structural Changes in Anglo/Lafarge," CPI Journal, Competition Policy International, vol. 9.
    4. Compte, Olivier & Jenny, Frederic & Rey, Patrick, 2002. "Capacity constraints, mergers and collusion," European Economic Review, Elsevier, vol. 46(1), pages 1-29, January.
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    6. Adrian J. Proctor, 2014. "Tacit Collusion Indicators In Merger Control Under Varied Focal Points," Journal of Competition Law and Economics, Oxford University Press, vol. 10(4), pages 959-987.
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    More about this item

    Keywords

    Identifying Tacit Coordination; Customer Geographic Focal points; Collusion; Merger Analysis.;
    All these keywords.

    JEL classification:

    • L4 - Industrial Organization - - Antitrust Issues and Policies
    • L41 - Industrial Organization - - Antitrust Issues and Policies - - - Monopolization; Horizontal Anticompetitive Practices

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