Tacit collusion to fight predatory pricing
I have thoroughly enjoyed teaching for the first time in the Executive LLM programme recently launched by the LSE. As is usually the case, one learns a lot from students. When discussing oligopolies and tacit collusion, Lars mentioned the creation of a Market Transparency Unit for Fuels (all capital letters, it’s after all a German authority) by the Bundeskartellamt. According to the authority, this initiative will make it easier to address ‘illegal predatory strategies and other forms of market power abuse’. Impeccable move. There is certainly nothing better than tacit collusion to fight predatory pricing!