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Impact of the Antitrust Legislation Interpretation on the Declaration of Firms to be Guilty of Tacit Collusion

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Listed:
  • Aleksandr V. Kniaginin

    (Financial Research Institute, Moscow 127006, Russia)

Abstract

The study is devoted to the assessment of the impact of the antitrust laws interpretation on the conviction of tacit collusion. In the first part of the article tacit collusion is explained in terms of game theory and economic theory and then a general approach to proving firms to be guilty of tacit collusion in Russian antitrust legislation is presented. The main part of the work includes analysis of 48 cases content, in which firms of Russian retail fuel market argued in court that they were not guilty of tacit collusion. Based on this analysis, main effects of the antitrust laws interpretation on the conviction of tacit collusion were identified. Author concludes that under certain circumstances the concepts adopted in the Russian legislation make the outcome of the trial depending on the court’s opinion on the interpretation of these concepts and generate a number of unintended systematic effects that may lead to a decrease in public welfare.

Suggested Citation

  • Aleksandr V. Kniaginin, 2018. "Impact of the Antitrust Legislation Interpretation on the Declaration of Firms to be Guilty of Tacit Collusion," Finansovyj žhurnal — Financial Journal, Financial Research Institute, Moscow 125375, Russia, issue 3, pages 78-89, June.
    • Handle: RePEc:fru:finjrn:180306:p:78-89
    DOI: 10.31107/2075-1990-2018-3-78-89
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    References listed on IDEAS

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    1. Joseph E. Harrington, Jr, 2006. "How Do Cartels Operate?," Economics Working Paper Archive 531, The Johns Hopkins University,Department of Economics.
    2. S. Avdasheva., 2011. "Illegality of Tacit Collusion in Russian Antitrust Legislation: Could Economists Be Useful to Generate Legal Rules?," VOPROSY ECONOMIKI, N.P. Redaktsiya zhurnala "Voprosy Economiki", vol. 5.
    3. Patrick Andreoli-Versbach & Jens-Uwe Franck, 2015. "Econometric Evidence To Target Tacit Collusion In Oligopolistic Markets," Journal of Competition Law and Economics, Oxford University Press, vol. 11(2), pages 463-492.
    4. Harrington, Joseph E., 2006. "How Do Cartels Operate?," Foundations and Trends(R) in Microeconomics, now publishers, vol. 2(1), pages 1-105, August.
    5. Garrod, Luke & Olczak, Matthew, 2018. "Explicit vs tacit collusion: The effects of firm numbers and asymmetries," International Journal of Industrial Organization, Elsevier, vol. 56(C), pages 1-25.
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    More about this item

    Keywords

    tacit collusion; antitrust law; fuel market; public welfare; type I and type II errors;
    All these keywords.

    JEL classification:

    • K21 - Law and Economics - - Regulation and Business Law - - - Antitrust Law
    • L41 - Industrial Organization - - Antitrust Issues and Policies - - - Monopolization; Horizontal Anticompetitive Practices

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