This paper examines the relationship among daily information flow, return volatility, and bid-ask spreads based on the framework of the mixture of distribution hypothesis (MDH). The MDH model is modified to permit separate effects of informed and liquidity trading volume on return volatility....

We conduct an experimental study of cartel behaviour in the presence of an active competition authority that may respond to suspicious pricing behaviour by firms. We find that subjects are doing very well in developing strategies to avoid antitrust detection. We observe gradual price increases...