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Abstract

In December 2013, the Ministry of Corporate Affairs passed on the complaints of the All India Tyres Dealers’ Federation (AITDF) against the tyre manufactures to the Competition Commission of India (CCI) for further investigation and order. In its complaint the AITDF charged the tyre companies for keeping the prices of tyres high inspite of moderation in input cost, price parallelism, and lobbying for anti- competitive trade practices. Taking a decision on the case was challenging for the CCI as price parallelism could have been either an outcome of market forces or of collusive practices. This case depicts the challenges of regulatory and investigative agencies of identifying anti-competitive trade practices in an oligopoly market structure. It can be used for managerial economics course in post graduate management programs for explaining the concepts like oligopoly market structure, collusion, cartel, anti-competitive trade practices, and explaining the short-run and long-run trade-off in infusing competition in an oligopoly market structure. This case can also be used for illustrating the industrial structure and policies in economic environment of business course.
Location:
Industry:
Other setting(s):
2013-2016

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Abstract

In December 2013, the Ministry of Corporate Affairs passed on the complaints of the All India Tyres Dealers’ Federation (AITDF) against the tyre manufactures to the Competition Commission of India (CCI) for further investigation and order. In its complaint the AITDF charged the tyre companies for keeping the prices of tyres high inspite of moderation in input cost, price parallelism, and lobbying for anti- competitive trade practices. Taking a decision on the case was challenging for the CCI as price parallelism could have been either an outcome of market forces or of collusive practices. This case depicts the challenges of regulatory and investigative agencies of identifying anti-competitive trade practices in an oligopoly market structure. It can be used for managerial economics course in post graduate management programs for explaining the concepts like oligopoly market structure, collusion, cartel, anti-competitive trade practices, and explaining the short-run and long-run trade-off in infusing competition in an oligopoly market structure. This case can also be used for illustrating the industrial structure and policies in economic environment of business course.

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Location:
Industry:
Other setting(s):
2013-2016

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