Iossa, Elisabetta
Coordination in the fight against collusion - American Economic Journal: Microeconomics - 16(1), Feb, 2024: p.224-261
While antitrust authorities strive to detect, prosecute, and thereby deter collusive conduct, entities harmed by that conduct are also advised to pursue their own strategies to deter collusion. The implications of such delegation of deterrence have largely been ignored, however. In a procurement context, we find that buyers may prefer to accommodate rather than deter collusion among their suppliers. We also show that a multimarket buyer, such as a centralized procurement authority, may optimally deter collusion when multiple independent buyers would not, consistent with the view that "large" buyers are less susceptible to collusion.- Reproduced
https://www.aeaweb.org/articles?id=10.1257/mic.20220194#:~:text=By%20contrast%2C%20there%20is%20never,collusive%20conduct%20by%20their%20suppliers.
Antitrust Authorities, Collusive Conduct, Delegation of Deterrence, Procurement Context, Buyer Strategies, Multimarket Buyer, Centralized Procurement Authority, Large Buyers, Susceptibility to Collusion.
Coordination in the fight against collusion - American Economic Journal: Microeconomics - 16(1), Feb, 2024: p.224-261
While antitrust authorities strive to detect, prosecute, and thereby deter collusive conduct, entities harmed by that conduct are also advised to pursue their own strategies to deter collusion. The implications of such delegation of deterrence have largely been ignored, however. In a procurement context, we find that buyers may prefer to accommodate rather than deter collusion among their suppliers. We also show that a multimarket buyer, such as a centralized procurement authority, may optimally deter collusion when multiple independent buyers would not, consistent with the view that "large" buyers are less susceptible to collusion.- Reproduced
https://www.aeaweb.org/articles?id=10.1257/mic.20220194#:~:text=By%20contrast%2C%20there%20is%20never,collusive%20conduct%20by%20their%20suppliers.
Antitrust Authorities, Collusive Conduct, Delegation of Deterrence, Procurement Context, Buyer Strategies, Multimarket Buyer, Centralized Procurement Authority, Large Buyers, Susceptibility to Collusion.