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WHAT IS
BUSINESS
COLLUSION?
??
BUISNESS COLLUSION
DEFINITION
A secret agreement between two or more
firm to increase or decreasing the price
of their pro...
HOW DOES
BUISNESS COLLUSION
WORK??
EXAMPLE:
1. Shell and BP accused of collusion in South Africa
On year 2009, six companies of South Africa set up the price...
What CAUSES them get involved
into BUSINESS COLLUSION ?
GREEDY IN
MONEY AND
WEALTHY
NEGATIVE IMPACT OF
BUISNESS COLLUSION
•Regularly leads to reduced quality
•Harm consumers’ welfare
•Increase burden to con...
- The government can enforce the laws related
to business collusion
-Persuade procurement officials to report
suspicions o...
Individual & Public effort
-Spread through media about
business collusion
-Give advice to certain party or firm

-Give out...
-Kuznets, P. W. (1998). Reviews. Economic Development & Cultural
Change, 47(1), 220.
-Reske, H. J. (1993). WAS IT COLLUSIO...
-MICHIGAN BRIEFS. (2012). Crain's Detroit Business, 28(27), 0002.
-Ogawa, Y., & Ono, Y. (2011). The Byrd Amendment as Faci...
THANK YOU
Business
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Transcript of "Business"

  1. 1. WHAT IS BUSINESS COLLUSION? ??
  2. 2. BUISNESS COLLUSION DEFINITION A secret agreement between two or more firm to increase or decreasing the price of their product, rigging the market price to reach their opportunity to be more profitable. It also a price war between firms.
  3. 3. HOW DOES BUISNESS COLLUSION WORK??
  4. 4. EXAMPLE: 1. Shell and BP accused of collusion in South Africa On year 2009, six companies of South Africa set up the price of diesel artificially high to make themselves more profitable. 2. Barclays hit for LIBOR fixing 
Barclays have been fined for distorting interest rates .Barclays will pay $453m for using underhand tactics, including price-fixing, to rig the markets 3. GlaxoSmithKline fined $3 billion for off-label GSK targeted the antidepressant Paxil at patients under age 18 when it was approved only for adults, and promoted the drug Wellbutrin for uses it was not approved - this tackles weight loss and treatment of sexual dysfunction. 4. Price fixing in South Korea 
 Samsung Electronics and LG Electronics have been fined for conspiring to fix the prices of some appliances. The regulator said the two firms held secret meetings in 2008 and 2009 to agree on prices for some machine products.
  5. 5. What CAUSES them get involved into BUSINESS COLLUSION ?
  6. 6. GREEDY IN MONEY AND WEALTHY
  7. 7. NEGATIVE IMPACT OF BUISNESS COLLUSION •Regularly leads to reduced quality •Harm consumers’ welfare •Increase burden to consumers
  8. 8. - The government can enforce the laws related to business collusion -Persuade procurement officials to report suspicions of collusion with strong evidence -Increase the amount of bidders - Preserve procurement records such as bid list
  9. 9. Individual & Public effort -Spread through media about business collusion -Give advice to certain party or firm -Give out a campaign
  10. 10. -Kuznets, P. W. (1998). Reviews. Economic Development & Cultural Change, 47(1), 220. -Reske, H. J. (1993). WAS IT COLLUSION OR JUST GOOD BUSINESS?. ABA Journal, 79(5), 76. -Drnevich, P. L., & Croson, D. C. (2013). INFORMATION TECHNOLOGY AND BUSINESS-LEVEL STRATEGY: TOWARD AN INTEGRATED THEORETICAL PERSPECTIVE. MIS Quarterly, 37(2), 483-509. -Bagwell, K., & Staiger, R. W. (1997). Collusion over the business cycle. RAND Journal Of Economics (RAND Journal Of Economics), 28(1), 82-106. - Cook Jr., P. W. (1963). Fact and Fancy on Identical Bids. Harvard Business Review, 41(1), 67-72.
  11. 11. -MICHIGAN BRIEFS. (2012). Crain's Detroit Business, 28(27), 0002. -Ogawa, Y., & Ono, Y. (2011). The Byrd Amendment as Facilitating a Tacit International Business Collusion. Review Of International Economics, 19(5), 877-893. doi:10.1111/j.1467-9396.2011.00992.x -Kimmons, R. (2013). Examples of Collusion Between Firms. Retrieved from Chron: http://smallbusiness.chron.com/examples-collusionbetween-firms-18797.html
  12. 12. THANK YOU
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