TY  - UNPD
A1  - Andres, Maximilian
A1  - Bruttel, Lisa Verena
A1  - Friedrichsen, Jana
T1  - How communication makes the difference between a cartel and tacit collusion
T2  - CEPA Discussion Papers
N2  - This paper sheds new light on the role of communication for cartel formation. Using machine learning to evaluate free-form chat communication among firms in a laboratory experiment, we identify typical communication patterns for both explicit cartel formation and indirect attempts to collude tacitly. We document that firms are less likely to communicate explicitly about price fixing and more likely to use indirect messages when sanctioning institutions are present. This effect of sanctions on communication reinforces the direct cartel-deterring effect of sanctions as collusion is more difficult to reach and sustain without an explicit agreement. Indirect messages have no, or even a negative, effect on prices.
T3  - CEPA Discussion Papers - 53 
KW  - cartel
KW  - collusion
KW  - communication
KW  - machine learning
KW  - experiment
Y1  - 2022
UR  - https://publishup.uni-potsdam.de/frontdoor/index/index/docId/56223
UR  - https://nbn-resolving.org/urn:nbn:de:kobv:517-opus4-562234
SN  - 2628-653X
ER  -