Vice Presidents Dov Rothman and Aaron Yeater Publish on the Fallacy of Inferring Collusion from Countercyclical Prices

August 21, 2015

In cartel matters, plaintiffs often claim that higher prices during periods of weak demand is evidence of collusion. In a recent article, "The Fallacy of Inferring Collusion from Countercyclical Prices" (American Bar Association Section of Antitrust Law, The Economics Committee Newsletter, Spring 2015), Vice Presidents Dov Rothman and Aaron Yeater explain that this claim is based on an oversimplified economic framework. In actual markets, prices may go up or down when demand changes. An important implication is that one cannot infer collusion from the mere observation of higher prices during periods of weak demand.

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