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The paper explores the role of price or quantity leadership in facilitating collusion. It extends the standard analysis … of tacit collusion by allowing firms to make their strategic choices either simultaneously or sequentially. It is shown … that price leadership indeed facilitates collusion by making it easier to punish deviations by the leader. In case of pure …
Persistent link: https://www.econbiz.de/10011051664
firms to collude. We analyse the scope for collusion with and without resale price maintenance (RPM) when retailers observe … collusion and it reduces total welfare whenever firms choose to adopt it. …
Persistent link: https://www.econbiz.de/10005792032
Whereas non-price restrictions such as exclusive territories are often tolerated while Resale Price Maintenance (RPM) is rather unanimously forbidden, the economic analysis shows so far that both types of restraints have positive and negative effects on welfare, in such a way that the balance is...
Persistent link: https://www.econbiz.de/10005022186
We study the design of auctions for the allocation of essential inputs, such as spectrum rights, transmission capacity …
Persistent link: https://www.econbiz.de/10012960122
Persistent link: https://www.econbiz.de/10014286667
Persistent link: https://www.econbiz.de/10012266257
While vertical integration is traditionally seen as a solution to the hold-up problem, this paper highlights instead that it can generate hold-up problems — for rivals. We first consider a successive duopoly where competition among suppliers eliminates any risk of hold-up; downstreamfirms thus...
Persistent link: https://www.econbiz.de/10011004742
Persistent link: https://www.econbiz.de/10009020010
Persistent link: https://www.econbiz.de/10009369323
Large retailers, enjoying substantial market power in some local markets, often compete with smaller retailers who carry a narrower range of products in a more efficient way. We find that these large retailers can exercise their market power by adopting a loss-leading pricing strategy, which...
Persistent link: https://www.econbiz.de/10009369331