
While there are suggestions in applied cartel studies that price dispersion changes when cartelization of a market occurs, there are few theoretical or empirical analyses of this effect. This article surveys the thin economic literature on the link between overt collusion and price dispersion. Formal theories and observation of cartel behaviour suggest that during successfully collusive periods prices become less variable and more negatively skewed compared to relatively competitive periods. Four empirical studies of cartels verify these predictions.
collusion, cartel, price dispersion, jel: jel:L11, jel: jel:L13, jel: jel:D43, jel: jel:L41
collusion, cartel, price dispersion, jel: jel:L11, jel: jel:L13, jel: jel:D43, jel: jel:L41
| selected citations These citations are derived from selected sources. This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically). | 30 | |
| popularity This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network. | Top 10% | |
| influence This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically). | Top 10% | |
| impulse This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network. | Average |
