Does Rigidity of Prices Hide Collusion?

Coordination on List Prices and Collusion in Negotiated Prices∗

A collusive practice in some intermediate goods markets is for sellers to coordinate on list prices but not final prices. We put forth a theory to explain how coordination on list prices can raise transaction prices even when all customers pay negotiated prices. Market conditions are identified that are conducive to firms profitably engaging in this form of collusive practice. The comments of M...

Does diabetes hide osteoarthritis pain?

Clinical practice and research efforts related to the highly prevalent and disabling disease, osteoarthritis (OA), have long been hampered by an inadequate case definition. Much of the difficulty is due to a lack of agreement between X-rays evidence of OA and a patient's report of pain at that site. Such discordance between reported pain and radiographic evidence of OA has been attributed to se...

House Price Rigidity and the Asymmetric Response of Housing Prices to Monetary Policy in Iran

This paper examines downward price rigidity in Iranian house market and discusses whether this characteristic would result in an asymmetric relationship between house price and monetary policy. To test the downward house price rigidity the threshold GARCH model is employed. The asymmetric adjustment to monetary policy is examined using the asymmetric cointegration and error correction models. T...

Does Europa's ice hide an ocean?

How to Eliminate Collusion in Tenders and Auctions, using Game Theory (Determination of Ceiling and Floor Prices)

Governments and firms in accordance to their duties, obliged to inevitably contracts with Individuals and legal entities, especially in auction and tender process. Since, the law of conducting tenders and auctions is lacking efficiency and has major objection, therefore, this has led to the dissemination and development of areas of corruption in these contracts (through collusion). In this pape...