Collusive stability with relative performance and network externalities

Yi-Shan Lu, Chien-Shu Tsai, Jen-Yao Lee and Chung-Yang Lee

In this paper, we aim to investigate the collusive stability in the presence of network externalities among firms with relative performance in the firm's objective functions. We demonstrate that collusive stability is increasing (decreasing) in the degree of relative performance, product substitutability and network effect when the network effect is sufficiently large (small). A competition agency might need to provide different guidance for anti-competitive regulation in the network industry.

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Year of publication:	2024
Authors:	Lu, Yi-Shan ; Tsai, Chien-Shu ; Lee, Jen Yao ; Lee, Chung-Yang
Published in:	Games. - Basel : MDPI, ISSN 2073-4336, ZDB-ID 2527220-2. - Vol. 15.2024, 23, Art.-No. 21, p. 1-7
Subject:	network externalities \| relative performance \| stability of collusion \| Netzwerkökonomik \| Network economics \| Theorie \| Theory \| Wettbewerbsbeschränkung \| Restraints of competition \| Kartell \| Cartel \| Oligopol \| Oligopoly

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Type of publication:	Article
Type of publication (narrower categories):	Aufsatz in Zeitschrift ; Article in journal
Language:	English
Other identifiers:	10.3390/g15030021 [DOI]
Classification:	D43 - Oligopoly and Other Forms of Market Imperfection ; O34 - Intellectual Property Rights: National and International Issues ; L13 - Oligopoly and Other Imperfect Markets ; L41 - Monopolization; Horizontal Anticompetitive Practices
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10014636244