[When s 45A was added to the Trade Practices Act 1974 (Cth) in 1977, price-fixing became illegal per se. Since then a large number of cases have been brought successfully, with much higher pecuniary penalties being ordered in recent times. Following the recommendations of the Dawson Committee, new legislation is likely to be passed in 2005 that recognises the need for even higher pecuniary pena...

Price dynamics are characterized for a price-fixing cartel. Antitrust laws reduce cartel prices even though cartel detection occurs with probability zero. In response to cheating, the non-collusive price gradually moves from the collusive price to the static Nash equilibrium price.  2003 Elsevier Science B.V. All rights reserved.