Wednesday, April 24, 2013

Price Fixing in Detergent Soap

The Wall Street Journal has reported that France has fined four detergent soap manufacturers for conspiring to price fix the price of detergent soap. The article shows that executive from the major detergent producers met to set their prices, and as the prisoner's dilemma suggests that the collusive agreement broke down in part due to the costs and difficulties of monitoring deviations from the agreement.

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