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Friday, 16 April 2010

Regulation in Markets

Imperial Tobacco fined £112m and Co-op and Asda were penalised by £14m each

http://www.guardian.co.uk/business/2010/apr/16/oft-levies-225m-for-cigarette-price-manipulation

  • How does price fixing affect consumer surplus and producer surplus?
  • Does fining firms for such exploitation stop them for doing the same thing again?
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