Collusive Communication and Pricing Coordination in a Retail Gasoline Market

Collusive Communication and Pricing Coordination in a Retail Gasoline Market This paper studies how communication is used by a retail gasoline cartel in Australia to coordinate price increases, a role of communication in collusion not highlighted by Genesove and Mullin (Am Econ Rev 91(3): 379–398, 2001). A unique data set from the trial record allows for quantifying not only the pricing dynamics, but also the communication patterns. Both empirical and narrative evidence suggests the collusive communication and pricing behavior is well captured by the price cycle equilibrium of the Maskin and Tirole (Econometrica 56(3): 571–599, 1988) model. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Review of Industrial Organization Springer Journals

Collusive Communication and Pricing Coordination in a Retail Gasoline Market

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Publisher
Springer US
Copyright
Copyright © 2008 by Springer Science+Business Media, LLC.
Subject
Economics; Industrial Organization; Microeconomics
ISSN
0889-938X
eISSN
1573-7160
D.O.I.
10.1007/s11151-008-9163-2
Publisher site
See Article on Publisher Site

Abstract

This paper studies how communication is used by a retail gasoline cartel in Australia to coordinate price increases, a role of communication in collusion not highlighted by Genesove and Mullin (Am Econ Rev 91(3): 379–398, 2001). A unique data set from the trial record allows for quantifying not only the pricing dynamics, but also the communication patterns. Both empirical and narrative evidence suggests the collusive communication and pricing behavior is well captured by the price cycle equilibrium of the Maskin and Tirole (Econometrica 56(3): 571–599, 1988) model.

Journal

Review of Industrial OrganizationSpringer Journals

Published: May 17, 2008

References

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