Friday, April 18, 2008

Unit 2: Market dominance; collusion in the construction industry

The Office of Fair Trading (OFT) has accused 112 construction companies of rigging bids for contracts according to this BBC article.

a) How is the free market failing according to the OFT?
b) What actions can the OFT take to reduce the market failure?
c) To what extent do you believe the OFT can be successful in combatting/deterring acts such as collusion and price fixing?

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