Feb 28, 2014
CPI Cartel Column edited by Rosa Abrantes-Metz (Global Economics Group/NYU Stern School of Business)
Welcome to the February issue of “From Collusion to Competition,” which is dedicated to Peru.
This month we will learn about anti-cartel policy and detection from the Chief Economist at Indecopi, the Peruvian Competition Authority, Dr. Javier Coronado Saleh. With very few resources, Indecopi has successfully unveiled a number of cartels in the last 17 years, by means of ex-officio investigations. The common factor of these cartel breaks, is that they have all necessarily had a strong impact over poverty reduction in Peru. In this very interesting article, Dr. Coronado argues that allocating resources to fighting cartels in market segments with the most impact in poverty reduction coupled with a high likelihood that cartels do exist in those markets, is a sensible approach to select which ex-officio investigations to undertake.
Essentially, Indecopi follows a specific structural approach to screening for conspiracies, but it has also revealed interest in empirical screening. The Office of the Chief Economist was asked to deliver a monthly report for price screening based on the essential products reported systematically by the National Institute of Statistics. The report aims at statistically analyzing the data generating process of price time series of essential, non-durable consumption products, giving early notice of unusual trends on the time evolution of...