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Wednesday, December 19, 2012

''How antitrust economists are getting better at spotting cartels''

From The Economist

''THESE are nervy times for price-fixers. Banks that allegedly manipulated LIBOR, an interbank interest rate, are awaiting their punishment. At $800 trillion, the market is the largest ever to have been rigged. Fines to follow that imposed on Barclays in the summer are expected soon for other rate-fixing banks; this week saw the first arrests connected with the LIBOR scandal. Other cartels also have reason to be jumpy. The LIBOR case provides a good example of how competition authorities can use price data to scan markets, quickly spotting even small-scale collusion.''

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