Showing 1 - 10 of 15,549
The paper studies how does the size of a cartel affect the possibility that its members can sustain a collusive … agreement. I obtain that collusion is easier to sustain the larger the cartel is. Then, I explore the implications of this … result on the incentives of firms to participate in a cartel. Firms will be more willing to participate because otherwise …
Persistent link: https://www.econbiz.de/10011324920
The seminal paper by Salant, Switzer and Reynolds (1983) showed that merger in a standard Cournot framework with linear demand and linear costs is not profitable unless a large majority of the firms are involved in the merger. However, many strategic aspects matter for firm competition such as...
Persistent link: https://www.econbiz.de/10010261187
This paper analyzes dynamic cartel formation and antitrust enforcement when firms operate in demand-related markets. We … show that cartel prosecution can have a knock-on effect: desisting a cartel in one market reduces profits and cartel … stability and leads to the break-up of the cartel in the adjacent market. Cartel prosecution can also have a waterbed effect …
Persistent link: https://www.econbiz.de/10010274005
In this paper we analyze cartel formation and self-reporting incentives when firms operate in several geographical …-reporting by cartel members. …
Persistent link: https://www.econbiz.de/10010274020
cartel stability. …
Persistent link: https://www.econbiz.de/10010318791
analysis and investigates whether they operate efficiently. The CFD cartel-audit should enable the detection of cartels via … patterns. The CFD cartel-audit attempts to draw conclusions from these patterns in order to find hidden cartels and to engage …
Persistent link: https://www.econbiz.de/10010307143
We examine coordinated effects of mergers in the Swedish retail market for gasoline during the period 1986-2002. Despite significant changes in market concentration and many factors conductive to coordination, the empirical analysis shows that the level of coordination is low. In addition,...
Persistent link: https://www.econbiz.de/10010320138
This paper contributes to the study of tacit collusion by analyzing infinitely repeated multiunit uniform price auctions in a symmetric oligopoly with capacity constrained firms. Under both the Market Clearing and Maximum Accepted Price rules of determining the uniform price, we show that when...
Persistent link: https://www.econbiz.de/10010320186
cooperation, undercutting is defection. Jointly, competitors are better off if both are faithful to a cartel. Individually, profit … is highest if only the competitor(s) is (are) loyal to the cartel. Yet collusion inflicts harm on the opposite market …
Persistent link: https://www.econbiz.de/10010281843
Consider a market with switching costs that is initially served by a monopolistic incumbent. How can a competitor successfully enter this market? We show that an offer to undercut the incumbent by a fixed margin serves this purpose. This strategy dominates traditional entry where the entrant...
Persistent link: https://www.econbiz.de/10010300418