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On Algorithmic Collusion and Reward-Punishment Schemes

Epivent, Andréa; Lambin, Xavier - 2022

A booming literature describes how artificial intelligence algorithms (AIAs) may autonomously learn to generate supra-competitive profits. Key to the widespread interpretation of the phenomena as ``collusion'', is the observation that the unilateral price cuts of an agent are followed by several...

Persistent link: https://www.econbiz.de/10014076676

Competition and R&D Financing : Evidence from the Biopharmaceutical Industry

Thakor, Richard T.; Lo, Andrew W. - 2021

The interaction between product market competition, R&D investment, and the financing choices of R&D-intensive firms on the development of innovative products is only partially understood. To motivate empirical hypotheses about this interaction, we develop a model which predicts that as...

Persistent link: https://www.econbiz.de/10013249274

Competition and R&D Financing : Evidence from the Biopharmaceutical Industry

Thakor, Richard T. - 2018

What is the interaction between competition, R&D investments, and the financing choices of R&D-intensive firms? Motivated by existing theories, we hypothesize that as competition increases, R&D-intensive firms will: (1) increase R&D investment relative to assets-in-place that support existing...

Persistent link: https://www.econbiz.de/10012937531

Screening for Collusion : A Spatial Statistics Approach

Heijnen, Pim; Haan, Marco; Soetevent, Adriaan R. - 2012

We develop a method to screen for local cartels. We first test whether there is statistical evidence of clustering of outlets that score high on some characteristic that is consistent with collusive behavior. If so, we determine in a second step the most suspicious regions where further...

Persistent link: https://www.econbiz.de/10014040653

Collusion and Research Joint Ventures

Miyagiwa, Kaz - 2015

We examine whether cooperation in R&D leads to product market collusion. Suppose that firms engage in a stochastic R&D race while maintaining the collusive equilibrium in a repeated-game framework. Innovation under competitive R&D creates inter-firm asymmetries, which destabilizes the collusive...

Persistent link: https://www.econbiz.de/10014221707

The Merger Paradox, Collusion and Competition Policy

Garcia, Filomena; Paz y Miño, Jose Manuel; Torrens, Gustavo - 2020

This paper develops a model that formalizes several connections between mergers, collusion and competition policy. In equilibrium, firms may merge to make collusion sustainable when it cannot be sustained with the original set of firms. A rise in the probability of detecting and prosecuting...

Persistent link: https://www.econbiz.de/10014110460

The Pro-Collusive Effect of Increased Cartel Detection Probabilities

Hinloopen, Jeroen - 2004

An increase in cartel discovery probability due to irregular price movements that result from cartel defection is shown … to increase cartel stability as short-run defection profits are less likely to be earned …

Persistent link: https://www.econbiz.de/10014028696

Multimarket Linkages, Cartel Discipline and Trade Costs

Agnosteva, Delina - 2018

. A key feature of the model is that cartel discipline is endogenous. Thus, markets that appear segmented are … strategically linked via the incentive compatibility constraint. Importantly, trade costs affect cartel shipments and welfare not … costs exert a negative and significant effect on cartel discipline. In turn, cartel discipline has a negative and …

Persistent link: https://www.econbiz.de/10012926563

Simulation and prosecution of a cartel with endogenous cartel formation

Paha, Johannes - 2010

cartelized industry. This paper endogenizes the process of cartel formation in a numeric simulation model where firms differ in … empirical methods used in the detection of cartels. -- Collusion ; Cartel Detection ; Cartel Formation ; Differential Evolution …

Persistent link: https://www.econbiz.de/10003950512

Methods for calculating cartel damages: a survey

Doose, Anna Maria - 2013

legal environments with regards to the estimation approaches being used for quantification of cartel damages. The direct …The paper focuses on the various methods used to quantify cartel damages, which have become more and more important as …

Persistent link: https://www.econbiz.de/10010230329