Identical Bid Prices

IT IS frequently stated that, assuming a standardized product, identity of bids and prices among sellers is as consistent with competition as it is with the lack of competition. The antitrust agencies themselves use this generalization as a working rule. In defense briefs, respondents go further and confidently affirm that identical bids and prices inevitably result from competition. This study will present empirical data on identical bidding and explore the conditions under which it arises. Price relationships in markets generally accepted as being genuinely competitive will also be examined. From these data generaliz.ations will be inferred that appear to hold true with respect to identical bid prices.