Market transparency and collusion: on the UK agricultural tractor registration exchange

Georgantzis, N. and Sabater-Grande, G. (2002) Market transparency and collusion: on the UK agricultural tractor registration exchange. European Journal of Law and Economics, 14 (2). pp. 129-150. ISSN 09291261 doi: 10.1023/A:1016554808648

Abstract/Summary

We review the decision by the European Commission in the case of the UK Agricultural Registration Exchange. We propose a theoretical model, offering a basis for some of the intuitive arguments used by the Commission on the anti-competitive role of information exchange in the case of price and non price collusion. Market transparency on non price data is shown to be a collusion facilitating device which may achieve stability in otherwise unstable cartels.