Bian, Junsong; Lai, Kin Keung; Hua, Zhongsheng - In: Economics Letters 118 (2013) 1, pp. 97-100
We investigate the effects of downstream firms’ managerial incentives on upstream collusion. Downstream profit-and-revenue incentive schemes make upstream manufacturers easier to collude than a pure-profit incentive scheme does when retailers compete in prices. However, the opposite occurs...