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Sticky Prices, Coordination and Collusion

Driscoll, John C. - 1999

New Keynesian models of price setting under monopolistic competition involve two kinds of inefficiency: the price level is too high because firms ignore an aggregate demand externality, and when there are costs of changing prices, price stickiness may be an equilibrium response to changes in...

Persistent link: https://www.econbiz.de/10012471622

Does Entry Remedy Collusion? Evidence from the Generic Prescription Drug Cartel

Starc, Amanda; Wollmann, Thomas G. - National Bureau of Economic Research - 2022

Entry represents a fundamental threat to cartels engaged in price fixing. We study the extent and effect of this behavior in the largest price fixing case in US history, which involves generic drugmakers. To do so, we link information on the cartel's internal operations to regulatory filings and...

Persistent link: https://www.econbiz.de/10013172185

Making friends with your neighbors? Agglomeration and tacit collusion in the lodging industry

Gan, Li - 2011

Agglomeration is a location pattern frequently observed in service industries such as hotels. This paper empirically examines if agglomeration facilitates tacit collusion in the lodging industry using a quarterly dataset of hotels that operated in rural areas across Texas between 2003 and 2005....

Persistent link: https://www.econbiz.de/10012461919

Tacit Collusion in the Presence of Cyclical Demand and Endogenous Capacity Levels

Knittel, Christopher R. - 2006

countercyclical. We also establish pricing patterns with respect to the relative prices in booms and recessions. If the marginal cost … intermediate range, numerical examples are calculated to show specific pricing patterns …

Persistent link: https://www.econbiz.de/10012466026

A Dynamic Oligopoly with Collusion and Price Wars

Fershtman, Chaim - 1999

Most of the theoretical work on collusion and price wars assumes identical firms and an unchanging environment, assumptions which are at odds with what we know about most industries. Further that literature focuses on the impact of collusion on prices. Whether an industry can support collusion...

Persistent link: https://www.econbiz.de/10012471871

Was the Forex Fixing Fixed?

Ito, Takatoshi - 2015

"Fixing" of the exchange rate (price) is a rule among the Forex market participating institutions to set a reference/settlement price for the day. Major fixings occur at 9:55 am Tokyo time for transactions between Japanese banks and their customers, and at 4:00 pm London time for transactions...

Persistent link: https://www.econbiz.de/10012457150

Price Cutting and Business Stealing in Imperfect Cartels

Bernheim, B. Douglas - 2014

Though economists have made substantial progress toward formulating theories of collusion in industrial cartels that account for a variety of fact patterns, important puzzles remain. Standard models of repeated interaction formalize the observation that cartels keep participants in line through...

Persistent link: https://www.econbiz.de/10012458671

Smokescreen : How Managers Behave When They Have Something To Hide

González, Tanja Artiga - 2013

We study financial reporting and corporate governance in 218 companies accused of price fixing. These firms engage in evasive financial reporting strategies, including earnings smoothing, segment reclassification, and restatements. In corporate governance, cartel firms favor outside directors...

Persistent link: https://www.econbiz.de/10012459775

Steering Incentives of Platforms : Evidence from the Telecommunications Industry

McManus, Brian - 2020

dealing with streaming video, and we show how these trade-offs change with the pricing options available to the ISP. Next, we … use unique household-level panel data and the introduction of usage-based pricing (UBP) in a subset of markets to measure … true if the ISP can offer rich pricing menus that allow it to capture some of the surplus generated by a better internet …

Persistent link: https://www.econbiz.de/10012481667

Irreversible Investment, Capital Costs and Productivity Growth : Implications for Telecommunications

Bernstein, Jeffrey I. - 2007

to invest in telecommunications. Results indicate that the irreversibility premium raises the opportunity cost of capital …

Persistent link: https://www.econbiz.de/10012465382