File(s) under permanent embargo

Reason: This item is currently closed access.

Collusion and cartels

chapter
posted on 26.05.2016, 12:32 authored by Luke GarrodLuke Garrod, Matthew Olczak
Collusion refers to conduct where firms cooperate over time to raise prices above competitive levels. Preventing collusion is one of the main aims of COMPETITION policy, and there is a distinction between explicit and tacit collusion. Explicit collusion refers to a cartel that colludes by directly communicating with each other. Tacit collusion is where firms collude without such explicit communication. Usually, only explicit collusion is considered illegal. Competition authorities attempt to deter cartels through sanctions on the firms and the individuals involved, and leniency programmes are an important method in which cartels are detected. Firms are encouraged to establish compliance programmes to avoid breaches of the law by their employees.

History

School

  • Business and Economics

Department

  • Economics

Citation

GARROD, L. and OLCZAK, M., 2015. Collusion and Cartels. IN: Augier, M. and Teece, D.J. (eds.) Palgrave Encyclopedia of Strategic Management. London: Plagrave MacMillan.

Publisher

© Palgrave Macmillan

Version

VoR (Version of Record)

Publisher statement

This work is made available according to the conditions of the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International (CC BY-NC-ND 4.0) licence. Full details of this licence are available at: https://creativecommons.org/licenses/by-nc-nd/4.0/

Publication date

2015

Notes

This is paper is in closed access

Language

en

Usage metrics

Exports