The role of umbrella pricing in private litigation
Prof. Dr. Andreas Polk, J. Franck, S. Frübing & K. Hüschelrath
ZEW Mannheim & U Mannheim
Funding Body / Own Project
Umbrella pricing occurs if a cartel does not cover all firms of an industry. In this case the cartel outsiders may be able to increase their prices as a response to the higher price level which the cartel incurs. This study aims at understanding under which conditions umbrella pricing occurs and determines factors which facilitate it.