e-journal
DIRECT VERSUS COMMUNICATIONS-BASED PROHIBITIONS ON PRICE FIXING
              ABSTRACT
This article compares two policies toward coordinated oligopolistic price elevation.
Most commentators endorse the view that the law should (and does) prohibit only
those price elevations produced by certain sorts of interfirm communications, such as
secret price negotiations. In contrast, little attention has been devoted to a more direct
approach that encompasses all coordinated price elevations that can be detected and
sanctioned effectively. It is demonstrated that the conventional formulation rests on
numerous misconceptions, involves complex and costly detection if its logical implications
are taken seriously, and tends to target cases with relatively low deterrence benefits
and high chilling costs in contrast to those targeted under the direct approach.            
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