The Three Types of Collusion: Fixing Prices, Rivals, and Rules

Collusion can profitably be classified into three distinct types. In our classification, Type I collusion is the familiar direct agreement among colluding firms (a cartel) to raise prices or, equivalently, restrict output. Alternatively, firms can collude to disadvantage rivals in ways that causes those rivals to cut output. We term this Type II collusion. Its indirect effect is an increase in market prices. A number of important collusion cases neither direct manipulation of prices or output, nor direct attacks on rivals. Examples include Supreme Court cases such as National Society of Professional Engineers v. US, Bates v. State Bar of Arizona, and FTC v. Indiana Federation of Dentists. In each of these cases, cartel members set prices and output independently. Their collusion shaped the rules under which the independent decisions of the colluding firms were made. Collusion permitted the cartel members to insulate themselves from each another, at least partially. Their newfound isolation provided benefits similar to those attainable from market power acquired in a more traditional fashion. By increasing the insulation of cartel members, each achieved the power and independence to raise its own price-the colluding firms competed on price, but their competition was rendered less vigorous than by collusion over rules. Archetypal examples of this type of collusion include softening competition by limiting information available to consumers through direct restrictions on advertising. In this Article we explore a number of examples of previously unexplained or uncategorizable cartels that can be explained by this construct. We show that, together, they form a third general category of anticompetitive behavior that we term Type III collusion. With considerable enforcement activity directed at collusion of Types I and II, we believe that Type III collusion will prove increasing attractive to firms and, accordingly, a growing source of social welfare loss from collusion

The Three Types of Collusion: Fixing Prices, Rivals, and Rules

Collusion can profitably be classified into three distinct types. In our classification, Type I collusion is the familiar direct agreement among colluding firms (a cartel) to raise prices or, equivalently, restrict output. Alternatively, firms can collude to disadvantage rivals in ways that causes those rivals to cut output. We term this Type II collusion. Its indirect effect is an increase in market prices. A number of important collusion cases neither direct manipulation of prices or output, nor direct attacks on rivals. Examples include Supreme Court cases such as National Society of Professional Engineers v. US, Bates v. State Bar of Arizona, and FTC v. Indiana Federation of Dentists. In each of these cases, cartel members set prices and output independently. Their collusion shaped the rules under which the independent decisions of the colluding firms were made. Collusion permitted the cartel members to insulate themselves from each another, at least partially. Their newfound isolation provided benefits similar to those attainable from market power acquired in a more traditional fashion. By increasing the insulation of cartel members, each achieved the power and independence to raise its own price-the colluding firms competed on price, but their competition was rendered less vigorous than by collusion over rules. Archetypal examples of this type of collusion include softening competition by limiting information available to consumers through direct restrictions on advertising. In this Article we explore a number of examples of previously unexplained or uncategorizable cartels that can be explained by this construct. We show that, together, they form a third general category of anticompetitive behavior that we term Type III collusion. With considerable enforcement activity directed at collusion of Types I and II, we believe that Type III collusion will prove increasing attractive to firms and, accordingly, a growing source of social welfare loss from collusion

Collusion over Rules

Many instances of anticompetitive collusion are designed not to affect prices and output directly, but rather to shape the rules under which competition takes place. They help to cushion competitors from hard competition through such rules as restraints on advertising, sham ethical codes, or bans on discounts, coupons, free services, or extended hours of operation. Instead of collusion directly over outcomes, firms attuned to the strategic impact of their activities often agree on ways in which to shape their environments in order to soften competition and to insulate themselves from hard competition in ways that will lead to higher prices. While not every agreement among rivals is anticompetitive, every agreement that is anticompetitive falls within one of three categories. Type I collusion encompasses traditional agreements to affect price and/or output directly or fairly directly. Type II collusion consists of agreements to disadvantage rivals. And Type III rule fixing collusion gathers together and explains the remaining types of agreements

Pengobatan Malaria Falsiparum tanpa Komplikasi dengan Halofantrin di Daerah Resisten Klorokuin

Treatment of uncomplicated falciparum malaria with halofantrine was carried out at ITCI Hospital, Balikpapan, East Kalimantan, Indonesia in 1990/1991. This study was conducted to assess the efficacy and safety of halofantrine. Eighty out of 96 malaria falciparum patients who had been selected according to WHO criteria for the in-vivo sensitivity test were treated with 500 mg halofantrine 6 hourly for three doses orally. The other 16 patients were treated with mefloquine 750 mg single dose orally as a control group. All patients were hospitalized for 3-5 days and followed up on day 7, 14, 21 and 28. The cure rate of halofantrine was 98.4% (62/63) and relapse rate was 1.6% (1/63) as a late RI. The mean fever clearance time (FCT) and parasite clearance time (PCT) were 22.4 ± 2.7 h and 58.3 ± 5.2 h respectively. Tlte FCT was significantly different compared to that of mefloquine (9.3 ± 2.4 h). Some haematological abnormalities appeared to be associated with malaria but no biochemical abnormalities were found. Mild diarrhoea (11.5%), nausea (6.4%), palpitation (2.6%) and dizziness (1.3%) were observed as side effects of halofantrine but disappeared without treatment.This study showed that halofantrine is effective and safe for the treatment of uncomplicated falciparum malaria in a chloroquine resistant area

Pengobatan Penderita Malaria Falsiparum tanpa Komplikasi dengan Meflokuin di Daerah Resisten Klorokuin

Treatment with mefloquine of uncomplicated falciparum malaria patients was undertaken in ITCI Hospital, Balikpapan, East Kalimantan, Indonesia in 1991. This study was conducted to assess the efficacy and safety of mefloquine, and to assess in vitro sensitivity of P. falciparum to other antimalarials currently in use. A total of 16 falciparum malaria patients who had been selected according to WHO criteria for the drug sensitivity test were treated with 750 mg mefloquine single dose orally. All patients were hospitalized for 3-5 days and followed up on day 7, 14, 21 and 28. Clinical and parasitological examinations were carried out during the study, haematological and biochemical examinations were also performed before drug administration and when the patient was discharged from the hospital. The main presenting symptoms were chills, headache and fever. Cure rate was 100% with the mean fever clearance time and parasite clearance time was 9.3 ±_ 2.4 hours and 47.1 +_ 3.7 hours respectively. No significant drug-related changes were noted in hematological or biochemical parameters. Only nausea was observed as a side effect of mefloquine which was mild and disappeared without treatment. ITCI Hospital area is a highly chloroquine resistant area (90,9%) and also as a multidrug resistant area (50%). This study shows that mefloquine is effective and safe for the treatment of uncomplicated falcipamm malaria resistant to chloroquine as well as for multidrug resistant cases

Explaining Earths Energy Budget: CERES-Based NASA Resources for K-12 Education and Public Outreach

Among atmospheric scientists, the importance of the Earth radiation budget concept is well understood. Papers have addressed the topic for over 100 years, and the large Clouds and the Earth's Radiant Energy System (CERES) science team (among others), with its multiple on-orbit instruments, is working hard to quantify the details of its various parts. In education, Earth's energy budget is a concept that generally appears in middle school and Earth science curricula, but its treatment in textbooks leaves much to be desired. Students and the public hold many misconceptions, and very few people have an appreciation for the importance of this energy balance to the conditions on Earth. More importantly, few have a correct mental model that allows them to make predictions and understand the effect of changes such as increasing greenhouse gas concentrations. As an outreach element of the core CERES team at NASA Langley, a multi-disciplinary group of scientists, educators, graphic artists, writers, and web developers has been developing and refining graphics and resources to explain the Earth's Energy budget over the last few decades. Resources have developed through an iterative process involving ongoing use in front of a variety of audiences, including students and teachers from 3rd to 12th grade as well as public audiences

A comparison of methods for the determination of dissolved oxygen in seawater

An intercalibration of dissolved oxygen methods was conducted at 2 stations in the Sargasso Sea between April 28 and May 3, 1990. The experiment compared three techniques using automated endpoint detection with the manual Winkler method using a starch endpoint. Institutions participating in the intercomparison were the Bedford Institute of Oceanography (automated photometric titration), the University of Delaware (automated amperometric titration), the Scripps Institution of Oceanography (manual titration), and the Woods Hole Oceanographic Institution (automated amperometric titration). Differences in measured oxygen concentrations between institutions were encouragingly small. However, small, systematic differences in dissolved oxygen between institutions did exist. The range between the highest and lowest oxygen values reported by the 4 institutions never exceeded 0.6% over the entire concentration range studied (3.4 to 6.2 mlj1). The good agreement is probably due to the use of the essentials of Carpenter's (1965) modification of the Winkler method by all institutions. The intercalibration revealed several aspects of dissolved oxygen measurements that require further research: (1) the intercalibration should be extended to very low oxygen concentrations; (2) procedures for measur ing and applying corrections for the seawater blank need to be formalized; (3) a simple procedure to measure the temperature of seawater at the time of sampling needs to be developed; and (4) the solubility of atmospheric oxygen in the Winkler reagents must be measured as a function of temperature. The intercalibration also revealed that analytical techniques required for precise and accurate volumetric measurements were often not applied, even by experienced analysts. It was found that uncalibrated pipets were used to dispense standards, that the volumes of oxygen flasks were not corrected for buoyancy, and that corrections for the thermal expansion of aqueous solutions were often not applied.This research was supported by National Science Foundation Grants OCE 88- 22542 and OCE 88-21977 and OCE 89-07815. Preparation and distribution of this report by the WHP Office, Woods Hole Oceanographic Institution, Woods Hole, MA. 02543 USA, was supported by NSF Grant OCE 89-07815

Recurrence Plot Based Measures of Complexity and its Application to Heart Rate Variability Data

The knowledge of transitions between regular, laminar or chaotic behavior is essential to understand the underlying mechanisms behind complex systems. While several linear approaches are often insufficient to describe such processes, there are several nonlinear methods which however require rather long time observations. To overcome these difficulties, we propose measures of complexity based on vertical structures in recurrence plots and apply them to the logistic map as well as to heart rate variability data. For the logistic map these measures enable us not only to detect transitions between chaotic and periodic states, but also to identify laminar states, i.e. chaos-chaos transitions. The traditional recurrence quantification analysis fails to detect the latter transitions. Applying our new measures to the heart rate variability data, we are able to detect and quantify the laminar phases before a life-threatening cardiac arrhythmia occurs thereby facilitating a prediction of such an event. Our findings could be of importance for the therapy of malignant cardiac arrhythmias

CXCR2 deficient mice display macrophage-dependent exaggerated acute inflammatory responses

CXCR2 is an essential regulator of neutrophil recruitment to inflamed and damaged sites and plays prominent roles in inflammatory pathologies and cancer. It has therefore been highlighted as an important therapeutic target. However the success of the therapeutic targeting of CXCR2 is threatened by our relative lack of knowledge of its precise in vivo mode of action. Here we demonstrate that CXCR2-deficient mice display a counterintuitive transient exaggerated inflammatory response to cutaneous and peritoneal inflammatory stimuli. In both situations, this is associated with reduced expression of cytokines associated with the resolution of the inflammatory response and an increase in macrophage accumulation at inflamed sites. Analysis using neutrophil depletion strategies indicates that this is a consequence of impaired recruitment of a non-neutrophilic CXCR2 positive leukocyte population. We suggest that these cells may be myeloid derived suppressor cells. Our data therefore reveal novel and previously unanticipated roles for CXCR2 in the orchestration of the inflammatory response