-known commitment problem by introducing communication. Allowing the upstream firm to chat privately with each downstream firm reduces … total offered quantity from near the Cournot level (observed in the absence of communication) halfway toward the monopoly … bargaining advantage from open communication that all of the gains from monopolizing the market accrue to them. A simple …

firms. Communication is often abused for explicit agreements and this strongly reduces competition. …

experiments with written cheap-talk communication between players and we compare them to treatments without the possibility to … tacitly but that the number of firms does not significantly affect outcomes with communication. As a result, the payoff gain … from communication increases with the number of firms, at a decreasing rate. …

-firm Cournot framework to test these predictions, and we also explore the impact communication has on buyer groups. The … experimental results show that buyer groups lead to lower outputs when groups can exclude single firms. Communication is identified … as a main factor causing collusive product markets. -- buyer groups ; cartels ; collusion ; communication ; experiments …