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experiments with written cheap-talk communication between players and we compare them to treatments without the possibility to …Factors facilitating collusion may not successfully predict cartel occurrence: when a factor predicts that collusion … tacitly but that the number of firms does not significantly affect outcomes with communication. As a result, the payoff gain …
Persistent link: https://www.econbiz.de/10011844753
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Even under antitrust enforcement, firms may still form a cartel in an infinitely-repeated oligopoly model when the discount factor is sufficiently close to one. We present a linear oligopoly model where the profit-maximizing cartel price converges to the competitive equilibrium price as the...
Persistent link: https://www.econbiz.de/10011380471
We study the role of communication in collusive market sharing. In a series of Cournot oligopoly experiments with …. We find that the effect of communication on the firms' ability to collude depends on the type of information available … strategy, even if stated only once, drives this strong effect. Our results point to the types and contents of communication …
Persistent link: https://www.econbiz.de/10012134028
This study investigates the impact of cheap talk on price in a repeated Bertrand oligopoly experiment. Each participant plays 20 rounds. Participants are placed in three-person bidding groups where the lowest bid wins. During the first 10 rounds, participants are not allowed to communicate with...
Persistent link: https://www.econbiz.de/10012848520
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guarantee fewer cartels in a market. (ii) Cartel formation occurs in two distinct ways. In one case, firms simultaneously choose …) Managers are more likely to form cartels when managers' and owners' incentives are different compared to when their incentives …
Persistent link: https://www.econbiz.de/10013289637
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cooperation. We deploy our framework in one-shot public goods experiments in the US and the UK, and in Morocco and Turkey. We find …
Persistent link: https://www.econbiz.de/10012549763
This paper surveys recent experimental and field evidence on the impact of concerns for fairness, reciprocity and altruism on economic decision making. It also reviews some new theoretical attempts to model the observed behavior.
Persistent link: https://www.econbiz.de/10010440439