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A Dynamic Oligopoly with Collusion and Price Wars
Fershtman, Chaim; Pakes, Ariel - 2021
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/10013223570
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A Dynamic Oligopoly with Collusion and Price Wars
Fershtman, Chaim; Pakes, Ariel - 2001
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/10014156182
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Sticky Prices, Coordination and Collusion
Driscoll, John C.; Ito, Harumi - 2021
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/10013249355
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Price and Capacity Competition
Acemoglu, Daron - 2010
We study the efficiency of oligopoly equilibria in a model where firms compete over capacities and prices. The … demands across the firms. We first establish the existence of pure strategy subgame perfect equilibria (oligopoly equilibria … oligopoly equilibria of this game can be arbitrarily low. However, if the best oligopoly equilibrium is selected (among multiple …
Persistent link: https://www.econbiz.de/10012760481
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Tacit Collusion in the Presence of Cyclical Demand and Endogenous Capacity Levels
Knittel, Christopher R. - 2010
We analyze tacit collusion in an industry characterized by cyclical demand and long-run scale decisions; firms face deterministic demand cycles and choose capacity levels prior to competing in prices. Our focus is on the nature of prices. We find that two types of price wars may exist. In one,...
Persistent link: https://www.econbiz.de/10012760596
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Growth Policy, Agglomeration, and (the Lack of) Competition
Brooks, Wyatt - 2016
Industrial clusters are promoted by policy and generally viewed as good for growth and development, but both clusters and policies may also enable non-competitive behavior. This paper studies the presence of non-competitive pricing in geographic industrial clusters. We develop, validate, and...
Persistent link: https://www.econbiz.de/10012977273
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Does Strategic Ability Affect Efficiency? Evidence from Electricity Markets
Hortacsu, Ali - 2017
Oligopoly models of price competition predict that strategic firms exercise market power and generate inefficiencies …
Persistent link: https://www.econbiz.de/10012953975
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An Aggregative Games Approach to Merger Analysis in Multiproduct-Firm Oligopoly
Nocke, Volker - 2018
Using an aggregative games approach, we analyze horizontal mergers in a model of multiproduct-firm price competition with nested CES or nested logit demands. We show that the Herfindahl index provides an adequate measure of the welfare distortions introduced by market power, and that the induced...
Persistent link: https://www.econbiz.de/10012919859
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Price Cutting and Business Stealing in Imperfect Cartels
Bernheim, B. Douglas - 2014
it is detected. We propose a theory of "equilibrium price cutting and business stealing" in cartels to bridge this gap … between theory and observation …
Persistent link: https://www.econbiz.de/10013056583
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Did Robert Bork Understate the Competitive Impact of Mergers? Evidence from Consummated Mergers
Ashenfelter, Orley - 2014
of oligopoly concerns resulting from mergers. In this paper, we provide a critique of Bork's views on merger policy from …
Persistent link: https://www.econbiz.de/10013057828