Parallel Behaviour – Primary Evidence of an Agreement

2013

Abstract The distinction between legitimate oligopoly and cartels is tackled by each competition authority. A parallel behaviour in an oligopolistic market might be seen as an anchor for competition's effectiveness, given that companies are required to respond to the decisions of other competitors, trying to keep a realistic and competitive position to ensure welfare. Cartels offer an opposite perspective of what competition really means. Apart from the observation of the econometrical model presented in the article, the final assessment should consider the particularities of the legal and economic environment, to conclude on the existence of a cartel based on reasonable grounds.