SCREENING FOR COLLUSION: A SPATIAL STATISTICS APPROACH
Session Collusion
Session ChairTBA

Presenter(s) Pim Heijnen, University of Amsterdam
Co-Author(s) Marco Haan, and Adriaan Soetevent, Universiteit van Amsterdam
Keywords collusion, data imputation, K-function, spatial statistics and variance screen
JEL Codes C11, D40, L12, L41

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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.

 
When & Where
Thu 3 Sep 2009
14:00 - 15:30
Room
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    VarScreenMarch09EARIE.pdf

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