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From course:

Industrial Organisation 2022

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Question:

How much more does consumers generally pay more as a consequence of a cartel, and how can counter factural pricing be used in the explanation?

Author: Hjalmer Pedersen



Answer:

On average, consumers pay 50% more when there is a cartel as opposed to normal market structure. Counterfactual price: Estimate of price that would have emerged if there was no cartel.


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