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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

A Dynamic Oligopoly with Collusion and Price Wars

Fershtman, Chaim; Pakes, Ariel - 2021

Persistent link: https://www.econbiz.de/10013223570

Sticky Prices, Coordination and Collusion

Driscoll, John C.; Itō, 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

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

Collusion at the Extensive Margin

Byford, Martin C. - 2014

We augment the multi-market collusion model of Bernheim and Whinston (1990) by allowing for firm entry into, and exit from, individual markets. We show that this gives rise to a new mechanism by which a cartel can sustain a collusive agreement: Collusion at the extensive margin whereby firms...

Persistent link: https://www.econbiz.de/10013053469

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/10013130967

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

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

Does Strategic Ability Affect Efficiency? Evidence from Electricity Markets

Hortaçsu, Ali - 2017

Oligopoly models of price competition predict that strategic firms exercise market power and generate inefficiencies …

Persistent link: https://www.econbiz.de/10012953975

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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