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ECONOMICS OF TACIT COLLUSION AND PARALLEL BEHAVIOUR
Abstract
Competition law prohibits all types of anti-competitive agreements, both express agreements and other arrangements identified as “cartels” or “concerted practices”. The evidence used for proving an agreement may be classified in two categories: direct and circumstantial proofs. When cartel cases cannot be built on the basis of direct evidence, courts require additional proofs to demonstrate its existence, including proofs of communication between competitors and economic evidence, the latter being represented by companies' behaviour analyses, by market structure and so on. The economic analysis can provide such indirect evidence. This paper presents some of the most important factors to be considered when assessing the possible existence of collusion on a particular market.
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