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We investigate the effect of a ban on third-degree price discrimination on the sustainability of collusion. We build a …' discount factor has to be higher in order to sustain collusion in grim-trigger strategies under price discrimination than under …
Persistent link: https://www.econbiz.de/10011434582
We analyze spying out a rival's price in a Bertrand market game with incomplete information. Spying transforms a simultaneous into a robust sequential moves game. We provide conditions for profitable espionage. The spied at firm may attempt to immunize against spying by delaying its pricing...
Persistent link: https://www.econbiz.de/10011962353
constrained. We show that collusion sustainability is non-monotonic in the size of the capacity constrained firm, which has little …
Persistent link: https://www.econbiz.de/10013473721
In this paper, we tackle the dilemma of pruning versus proliferation in a vertically differentiated oligopoly under the assumption that some firms collude and control both the range of variants for sale and their corresponding prices, likewise a multiproduct firm. We analyse whether pruning...
Persistent link: https://www.econbiz.de/10011451580
price collusion or merger is expected and with multi-product monopoly. In models with no price competition, less specific …
Persistent link: https://www.econbiz.de/10012779622
differentiated markets. I firstly review some classical literature on collusion between two firms producing goods of exogenous … the market may have contradictory effects on the incentive of firms to collude: it can make collusion easier for bottom …
Persistent link: https://www.econbiz.de/10012954129
. We show that in the absence of hassle costs, MCCs might induce collusion in homogeneous markets even if they are adopted … only by few retailers. If hassle and implementation costs are mild, collusion can be enforced by BCCs with lump sum refunds …
Persistent link: https://www.econbiz.de/10012546930
. We show that in the absence of hassle costs, MCCs might induce collusion in homogeneous markets even if they are adopted … only by few retailers. If hassle and implementation costs are mild, collusion can be enforced by BCCs with lump sum refunds …
Persistent link: https://www.econbiz.de/10013223424
collusion often leads to less production, technology sharing of nondrastic, but sufficiently large, innovations can increase … industry quantity output under collusion equal to or higher than that achieved under Cournot competition, making consumers … collusive equilibrium. Stability of collusion has policy implications for competition authorities as it provides an explanation …
Persistent link: https://www.econbiz.de/10013292540
first investigate the extent to which collusive agreements are feasible. Secondly, we focus on collusion sustainability in … an infinitely repeated game. We show that, regardless of the degree of cost asymmetry, at least some collusion is always … sustainable. Finally, the degree of collusion is also endogeneised to show that cooperation has an upper bound determined by the …
Persistent link: https://www.econbiz.de/10013243009