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We study the welfare effects of non-binding advance price announcements. Applying a differentiated Bertrand model with horizontal products and asymmetric information, we find that such announcements can help firms to gain information on each other thereby allowing them to achieve higher profits....
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agencies. After having examined the market, competition authorities concluded that tacit collusion existed but could not easily … type of variable tax scheme successfully manages to render collusion an unprofitable business. In addition, it is also easy … - and therefore non-prosecutable - collusion, could be turned into a regulatory virtue as it becomes a powerful means to …
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agencies. After having examined the market, competition authorities concluded that tacit collusion existed but could not easily … specially tailored tax on price successfully manages to render collusion an unprofitable business by collecting marginal profits … and that the inherent vice of the gasoline retail market, i.e., the transparency that enables tacit-and therefore non-prosecutable-collusion …
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