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Hub and spoke collusion by embargo

A common supplier (the hub) could try to enforce a collusive outcome between his buyers (the spokes) if they are unable to sustain such an agreement among themselves. We derive necessary and sufficient conditions under which the hub is willing to assume the policing role in a cartel.
Year of publication:
2013-12
Authors: CAYSEELE, Patrick VAN ; MIEGIELSEN, Simon
Institutions: Centrum voor Economische Studiën, Faculteit Economie en Bedrijfswetenschappen
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Type of publication: Book / Working Paper
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Persistent link: https://www.econbiz.de/10010730444
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