In this article from the Fall 2014 edition of Monopoly Matters, Sean Durkin shows that the discount attribution test framework provides a simple, intuitive way to illustrate the procompetitive consequences of loyalty discounts. To read the article, click the link below.
For a longer version of the paper, click here.
Assessing umbrella pricing incentives
When collusive agreements involve a subset of firms in an industry, they may create the incentive and ability for firms that are not participants in the cartel...