Chapter 6: Hub and Spoke Collusion
In order to achieve a coordinated response on the market it is necessary that competing undertakings are able to (a) identify a mutually beneficial strategy; (b) detect deviation from that strategy; and (c) apply pressure to prevent deviation from the mutually beneficial strategy. Information disclosure, by removing uncertainties, can make it easier for competing undertakings to achieve the first element of a coordinated market response – identifying a mutually beneficial strategy. Information disclosure may also enable competing undertakings to achieve the second element of a coordinated market response – detecting deviation from the mutually beneficial strategy.
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