Showing 1 - 10 of 107
to form cartels in Cournot markets. As in previous experiments, markets become very competitive when individualized … information is available and participants cannot communicate. In contrast, when communication is possible, results reverse …: Markets become less competitive and cartels become more stable when individualized information is available. We also observe …
Persistent link: https://www.econbiz.de/10011288400
cartels, including revenue-based penalties, the most widely used regime. We showed that for a typical industry overcharge …
Persistent link: https://www.econbiz.de/10011819513
Even under antitrust enforcement, firms may still form a cartel in an infinitely-repeated oligopoly model when the discount factor is sufficiently close to one. We present a linear oligopoly model where the profit-maximizing cartel price converges to the competitive equilibrium price as the...
Persistent link: https://www.econbiz.de/10010326070
An experiment is conducted were subjects interact repeatedly to examine the effect of a particular leniency program on cartel formation, cartel stability and cartel recidivism. The program leads to lower prices for three reasons. First, non-cooperators are more persistent in their behavior which...
Persistent link: https://www.econbiz.de/10010325279
between competitive and collusive basing-point pricing. We define a measure for the likelihood of collusion that can be used … to screen industries that traditionally apply delivered pricing for the presence of cartels. We operationalize this … screen with a software. The test is hard to beat for cartels using this otherwise elusive form of price-fixing. When a cartel …
Persistent link: https://www.econbiz.de/10010326071
This paper develops a model of the birth and death of cartels in the presence of enforcement activities by a … Competition Authority (CA). We distinguish three sets of interventions: (a) detecting, prosecuting and penalizing cartels; (b … to prevent the re-emergence of prosecuted cartels in the longer term. The last two intervention activities have not been …
Persistent link: https://www.econbiz.de/10011451518
ABSTRACT: We analyze the impact of product bundling in experimental markets. One firm has monopoly power in a first market but competes with another firm in a second market. We compare treatments where the multiproduct firm (i) always bundles, (ii) never bundles, and (iii) chooses whether or not...
Persistent link: https://www.econbiz.de/10010326151
potential for product market collusion. For that we utilize a dynamic model of R&D whereby we consider all possible initial … extension of the cooperative agreement towards collusion in the product market is not necessarily welfare reducing: if firms …
Persistent link: https://www.econbiz.de/10010326462
We develop a method to screen for local cartels. We first test whether there is statistical evidence of clustering of …
Persistent link: https://www.econbiz.de/10010326538
competition policy, where cartels may be exempted on CSR grounds. …
Persistent link: https://www.econbiz.de/10012114787