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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
policy. We address four core subject areas: market power, collusion, mergers between competitors, and monopolization. In each …
Persistent link: https://www.econbiz.de/10014023495
Do we have effective competition between the gasoline's big five oligopolists (Aral, Shell, Esso, Total and Jet) and fringe gasoline stations? Using 2014 Market Transparency price data from 66 cities with populations between 60,000 and 100,000, we analyze which brands lead price increases, the...
Persistent link: https://www.econbiz.de/10011487769
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
are sufficiently high, trade liberalization facilitates collusion. Exactly the opposite is true if, for any given degree … of product substitutability, trade costs are sufficiently low. We also study the dependence of multimarket collusion on …
Persistent link: https://www.econbiz.de/10013113914
In this paper we provide game theoretic support for the results of the kinked demand curve. By analyzing an infinitely repeated game where unit costs fluctuate stochastically between a low and a high state over time and where firms follow a price-matching punishment strategy, we demonstrate that...
Persistent link: https://www.econbiz.de/10013117289
We suggest a price signaling strategy that offers a microfoundation for the process leading to tacit collusion under … signaling can effectively mitigate the emergence of tacit collusion …
Persistent link: https://www.econbiz.de/10013006153
We analyze the effect of different pricing schemes on horizontally differentiated firms' ability to sustain collusion … that the additional price component of the two-part tariff makes it more difficult to sustain collusion. Additionally, the … pricing schedule that is most beneficial for customers in absence of collusion harms customers most in presence of (partial …
Persistent link: https://www.econbiz.de/10012799902
. 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