13 - Collusion and predation
On the detection of collusion and predation
Published online by Cambridge University Press: 21 September 2009
Summary
Introduction
Let me start with a quotation from the Bible: ‘And Moses went down from the mount unto the people, and sanctified the people; and they washed their clothes. And he said unto the people, “Be ready against the third day: come not at your wives”’.
This quotation seems appropriate, not because this congress is lasting three days, but because – like Moses – I shall come down from the mountain and bring you the tablets with the commandments. This will be my gift to those of you who are or will be involved in the implementation of competition policy at the European or national level. If those working for the defence, the so-called expert witnesses, obey the ten commandments, they will make the detection of collusion even more difficult than it is today. Yet, if the antitrust authorities know the ten rules of the game the defence is playing, they will react better than they currently do and increase their chances of detecting collusion.
In plain words, my topic is about how game theory can help collusion detection and especially about how game theory can help in making collusion detection difficult. Indeed, since we, the economic experts, are more often than not paid to testify for the defence, I shall pay special attention to the arguments they need to make their case.
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- Applied Industrial Economics , pp. 269 - 283Publisher: Cambridge University PressPrint publication year: 1998