Gagné, Robert; Norden, Simon van; Versaevel, Bruno - Centre Interuniversitaire de Recherche en Analyse des … - 2003
We analyse the effects of a price floor on price wars in the retail market for gasoline. Our theoretical model assumes a Bertrand oligopoly supergame in which firms initially collude by charging the monopolistic price. Once firms detect a deviation from this strategy, they switch to a lower...