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| Author: | Davis, D. Holt, C. |
| Title: | Conspiracies and secret discounts in laboratory markets |
| Journal: | Economic Journal
1998 : MAY, VOL. 108:448, p. 736-756 |
| Index terms: | ECONOMICS DISCOUNT RATE MARKETS |
| Language: | eng |
| Abstract: | This paper uses laboratory methods to evaluate whether price-fixing conspiracies break down in the presence of opportunities to offer secret discounts. The primary treatment difference is whether or not buyer-specific discounts from the posted list price are permitted. In standard posted-offer markets, conspiring sellers almost uniformly find and maintain near-monopoly prices. But when the possibility of offering secret discounts is introduced, sellers find sustaining collusive agreements much more difficult, and transactions prices tend to fall toward competitive levels. |
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