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SCREENING FOR COLLUSION: A SPATIAL STATISTICS APPROACH
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We develop a variance screen for collusion that explicitly takes the geographic structure of a market into account. Using techniques from spatial statistics, we develop a method that allows us to determine whether outlets with relatively little price variation are randomly located, or whether such outlets cluster together, raising suspicions of a local cartel. We illustrate the use of our spatial screen with an application to the retail gasoline market, a market with a distinct spatial component.
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When & Where |
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Thu 3 Sep 2009 |
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14:00 - 15:30 |
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VarScreenMarch09EARIE.pdf
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Paper Reference: 338
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