The OECD holds a roundtable on oligopoly

Key documents: Executive Summary with key findings, Detailled Summary of the discussion, Background note Executive summary, by the Secretariat Considering the discussion at the roundtable, the delegate submissions, and the background paper, the following key points emerge: Mutually aware that their actions will produce reactions from rivals, oligopolists have a strong incentive to substitute anti-competitive co-operation for vigorous competition. Such behaviour, referred to in what follows as "co-ordinated interaction", has negative welfare effects. This is especially clear in the case of collusion. The welfare losses associated with co-ordinated interaction are qualitatively the same as those linked to monopoly, i.e. higher prices, X-inefficiency, slower innovation, and reduced

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  • OECD - Competition Division (Paris)

Quotation

OECD, The OECD holds a roundtable on oligopoly, 1 May 1999, e-Competitions May 1999, Art. N° 85752

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