Implicit Cooperation and Transfer of Exchange Rate Fluctuations to Import Prices

The formation of cartels is prohibited in most industrial countries. However, only official price and quantity agreements can be effectively prevented by the respective regulating offices. Unofficial or even implicit cooperation between large and medium enterprises is not observable and, according to many economists, cannot be prevented. This project looks into the question of how far the empirically observable incomplete transfer of exchange rate fluctuations on import prices as well as the rigidity of nominal prices can be explained by the implicit cooperation between enterprises in certain sectors.