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Persistent link: https://www.econbiz.de/10011921195
The firms in this model set non-binding list prices before competing for buyers by non-cooperatively granting discounts. Each firm has an incentive to set a high list price if, for example, the customers anchor their willingness-to-pay on the list price. However, list price competition occurs if...
Persistent link: https://www.econbiz.de/10012314193
Firms sometimes collude by agreeing on increases in list prices. Yet, the efficacy of such list price collusion is … customers discounts. This article reviews cases of list price collusion in the USA and Europe, and it presents a theory of harm … suggesting that a combination of anchoring, orientation on reference points, and loss aversion may render list price collusion …
Persistent link: https://www.econbiz.de/10014501738
study the effects of NCMS on competition and collusion. The model encompasses both the case of a common owner holding shares … the sustainability of collusion under a greater variety of situations than was indicated by earlier literature. Such …
Persistent link: https://www.econbiz.de/10014504094
The firms in this model set non-binding list prices before competing for buyers by non-cooperatively granting discounts. Each firm has an incentive to set a high list price if, for example, the customers anchor their willingness-to-pay on the list price. However, list price competition occurs if...
Persistent link: https://www.econbiz.de/10012099187
This article finds that non-controlling minority shareholdings among competitors lower the sustainability of collusion …. This is the case under an even greater variety of situations than was indicated by earlier literature. The collusion …
Persistent link: https://www.econbiz.de/10011537410
Regression methods are commonly used in competition lawsuits for, e.g., determining overcharges in pricefixing cases. Technical evaluations of these methods' pros and cons are not necessarily intuitive. Appraisals that are based on case studies are descriptive but need not be universally valid....
Persistent link: https://www.econbiz.de/10010286407
In many cases, collusive agreements are formed by asymmetric firms and include only a subset of the firms active in the cartelized industry. This paper endogenizes the process of cartel formation in a numeric simulation model where firms differ in marginal costs and production technologies. The...
Persistent link: https://www.econbiz.de/10010286420
Standard methods for calculating cartel-damage rely on data of prices charged and quantity sold. Such data may not easily be available. In this paper, it is shown that accounting data can be used for computing a lower bound for cartel-damage. Previous literature indicates that economic profits...
Persistent link: https://www.econbiz.de/10010863254
Persistent link: https://www.econbiz.de/10009327577