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Real Estate & Planning Research Seminar by Professor Zhiyong Yao Fudan University Title: "Upstream Collusion with Downstream Compensation"

Zhiyong Yao
Event information
Date 22 May 2024
Time 11:00-12:00 (Timezone: Europe/London)
Venue Henley Business School
Event types:

Zhiyong's Bio and Abstract are below, and accompanying Papers attached here Upstream Collusion 20231206


Dr. Zhiyong Yao, Professor of Economics, School of Management, Fudan University. He’s got his BA and MA from Beijing University, PhD from UCLA. He studies and teaches Microeconomics and Industrial Economics. He’s published in academic Journals, such as Rand Journal of Economics, Journal of Industrial Economics, Journal of Mathematical Economics, etc.


This paper investigates upstream collusion that needs to compensate downstream firms to prevent anti-trust litigations from them. Our analysis shows that the relationship between cartel incidence and upstream market concentration is non-monotonic and likely to be inverted U-shaped. As the compensation for downstream firms increases, the inverted U-shape becomes more pronounced. Although the compensation reduces the harm of upstream collusion to social welfare and consumer surplus, a small amount of compensation facilitates upstream collusion. These findings have important implications for antitrust policy and market regulation.