Can Data Reveal a Cartel? The Nasdaq Missing Eighths

Opublikowano: 2026-09-24

How can economists find a cartel if there is no agreement? Nasdaq stocks were quoted in eighths of a dollar in the early 1990s. But economists discovered that for many heavily traded stocks, half of those potential price increments were rarely used. This pattern became known as the Nasdaq “missing eighth.” The research was made public, the dealers acted quickly, and the spreads tightened. Later investigation unearthed evidence that reached far beyond the initial statistical anomaly. In Episode 3 of How Cartels Really Work, we take this episode to discuss a fundamental distinction in antitrust economics: empi...