Posted Pricing as a Plus Factor∗
نویسنده
چکیده
This paper identifies conditions under which an industry-wide practice of posted (or list) pricing is a plus factor sufficient to conclude that firms established an agreement to coordinate their prices. For certain classes of markets, it is shown that, under competition, all firms setting a list price with a policy of no discounting is contrary to competition. Thus, if all firms choose posted pricing, it is to facilitate collusion by making it easier for them to coordinate their prices. It is then argued that the adoption of posted pricing communicates the necessary intent and reliance to conclude concerted action. ∗I am grateful to Jon Baker, George Hay, Bill Page, Greg Sidak, and an anonymous referee for their thoughtful and constructive comments. I remain solely responsible for any errors.
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