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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
collusion game. Consistent with the theories of collusion and cheap talk, an initial burst of collusion rapidly collapses if …-game communication is allowed, a similar initial decline in collusion reverses over time. Content analysis is used to identify multiple … channels by which communication improves collusion in this setting. Explicit threats to punish cheating are the most important …
Persistent link: https://www.econbiz.de/10014197918
sustainability of collusion is independent of key demand and supply parameters. Recent research has demonstrated that these …). This note considers the effects of demand curvature in the context of a model of collusion where, as in Gallice (2008 … effects of increased concavity (or convexity) in market demand on the sustainability of collusion runs in opposite directions …
Persistent link: https://www.econbiz.de/10014198641
collusion game. Consistent with the existing literature on communication and collusion, even minimal communication leads to a … short run increase in collusion. However, in a limited message-space treatment where subjects cannot communicate contingent … strategies, this initial burst of collusion rapidly collapses. When unlimited pre-game communication is allowed via a chat window …
Persistent link: https://www.econbiz.de/10014201287
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/10013241730
are indicative of collusion and allow the distinction between collusion from competition. This paper focuses on the … are worthy of more intense investigation. Thus the paper discusses the interrelationship between collusion/competition and …
Persistent link: https://www.econbiz.de/10013139174
buyers have heterogeneous storage technologies, periodic sales may facilitate collusion by magnifying intertemporal linking …
Persistent link: https://www.econbiz.de/10013119971
critical discount factor required to sustain collusion. This result is shown to hold for Cournot oligopoly as well as for … Bertrand oligopoly when collusion is sustained with Nash-reversion strategies or optimal-punishment strategies. In a Cournot …
Persistent link: https://www.econbiz.de/10010406210
We consider a seller s ability to deter potential entrants by offering exclusive contracts to its downstream buyers. Rasmusen, Ramseyer, and Wiley (1991) showed that this can be a pro fitable strategy if there is a coordination failure on the part of the buyers. Segal and Whinston (2000) showed...
Persistent link: https://www.econbiz.de/10010483054
Consumer switching costs cause the market demand of consumers who already bought a supplier's product to be less elastic while they simultaneously increase competition for new consumers. I study the effect of this twofold pricing incentive on firms' price setting behavior in a 2x2 factorial...
Persistent link: https://www.econbiz.de/10011892961