Ringbom, Staffan; Shy, Oz - In: Journal of Economics and Business 60 (2008) 6, pp. 502-516
This paper investigates industry-wide agreements on joint refund policies, and how they influence price competition. We compute the profit of fully-colluding, competing, and semicolluding service providers who offer refunds to those consumers who do not show up at the time of service. Our main...