Thursday, June 26, 2008

Unit 1: More fines for collusion in the air freight industry

The BBC reports more fines for collusion in the air freight industry

http://news.bbc.co.uk/1/hi/business/7475946.stm

a) How would you describe the air freight industry in terms of market structure?
b) What was the economic motivation for the firms to collude?
c) To what extent do you think such fines will deter future collusion?

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