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Fighting collusion by permitting price discrimination

Helfrich, Magdalena; Herweg, Fabian - 2016

We investigate the effect of a ban on third-degree price discrimination on the sustainability of collusion. We build a model with two firms that may be able to discriminate between two consumer groups. Two cases are analyzed: (i) Best-response symmetries so that profits in the static Nash...

Persistent link: https://www.econbiz.de/10011434582

Pricing by international airline alliances : a retrospective study using supplementary foreign-carrier fare data

Brueckner, Jan K.; Singer, Ethan - 2019

This study provides further empirical evidence on pricing by international airline alliances. The paper covers a long sample period, which runs from 1997 to 2016, and it supplements the usual USDOT fare data with confidential fare data reported by the foreign alliance partners of US carriers....

Persistent link: https://www.econbiz.de/10012022210

How communication makes the difference between a cartel and tacit collusion : a machine learning approach

Andres, Maximilian; Bruttel, Lisa Verena; Friedrichsen, Jana - 2022

This paper sheds new light on the role of communication for cartel formation. Using machine learning to evaluate free … cartel formation and indirect attempts to collude tacitly. We document that firms are less likely to communicate explicitly … sanctions on communication reinforces the direct cartel-deterring effect of sanctions as collusion is more difficult to reach …

Persistent link: https://www.econbiz.de/10013418834

Industry structure and pricing over the business cycle

Spiegel, Yossi; Stahl, Konrad - 2014

We consider the interaction between an incumbent firm and a potential entrant, and examine how this interaction is affected by demand fluctuations. Our model gives rise to procyclical entry, prices, and price-cost margins, although the average price in the market can be countercyclical if the...

Persistent link: https://www.econbiz.de/10010367376

Price equilibrium with selling constraints

Moraga-González, José Luis; Watanabe, Makoto - 2023

This paper studies how selling constraints, which refer to the inability of firms to attend to all the buyers who want to inspect their products, affect the equilibrium price and social welfare. We show that the price that maximizes social welfare is greater than the marginal cost. This is...

Persistent link: https://www.econbiz.de/10014320135

Virtual capacity and competition

Schultz, Christian (contributor) - 2005

In several European merger cases competition authorities have demanded that the merging firm auctions off virtual capacity. The buyer of virtual capacity receives an option on an amount of output at a pre-specified price, typically equal to marginal cost. This output is sold in the market in...

Persistent link: https://www.econbiz.de/10003110458

Core-stable rings in auctions with independent private values

Biran, Omer; Forges, Françoise - 2010

We propose a semi-cooperative game theoretic approach to check whether a given coalition is stable in a Bayesian game with independent private values. The ex ante expected utilities of coalitions, at an incentive compatible (noncooperative) coalitional equilibrium, describe a (cooperative)...

Persistent link: https://www.econbiz.de/10003974150

Global cartels, leniency programs and international antitrust cooperation

Choi, Jay Pil; Gerlach, Heiko A. - 2010

In this paper we analyze cartel formation and self-reporting incentives when firms operate in several geographical …-reporting by cartel members. -- cartel formation ; multi-market contact ; leniency programs ; international antitrust cooperation …

Persistent link: https://www.econbiz.de/10003955227

Optimal tariffs on exhaustible resources : the case of a quantity setting cartel

Fujiwara, Kenji; Long, Ngo Van - 2012

We formulate a dynamic game model of trade in an exhaustible resource with a quantity-setting cartel. We compute the … importing country, and leadership by the exporting cartel. We numerically show that as compared to the Nash equilibrium, both … players are better off if the importing country is the leader. The follower is worse off if the exporting cartel is the leader …

Persistent link: https://www.econbiz.de/10009488895

Company tax reform in Europe and its effect on collusive behavior

Schindler, Dirk (contributor); … - 2006

Persistent link: https://www.econbiz.de/10003363498