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We re-examine tacit collusion under a simple punishment rule in which firms match any lower price by their rivals, but otherwise leave their prices unchanged. We provide conditions under which this simple rule sustains collusion and is credible. Provided competition is imperfect, collusion can...
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In this short paper, cartel behaviour is analysed with respect to the market shares of cartel members. There is some …
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We model cartel defection in markets with stochastic demand fluctuations as an investment timing problem. We show that … (i) the optimal timing of cartel defection is pro-cyclical, suggesting higher probability of competitive pricing during …
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