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collusion based on the ratio of collusive to monopolistic profits. We then prove that as the number of firms goes to infinity …, our collusive strategy profile is an equilibrium as long as the discount factor is below 0.63. Thus, collusion is robust …
Persistent link: https://www.econbiz.de/10012848533
We study the pricing decision of firms in the presence of consumer inertia. Inertia can arise from habit formation, brand loyalty, switching costs, or search, and it has important implications for the interpretation of equilibrium outcomes and counterfactual analysis. In particular, consumer...
Persistent link: https://www.econbiz.de/10012064884
Mergers and acquisitions shape industry competition. Effective merger remedies are important for market efficiency and consumer welfare. This paper explores the need for more flexible remedies to address changing markets after mergers. While the EU permits some flexibility with less restrictive...
Persistent link: https://www.econbiz.de/10014376055
, collusion. …
Persistent link: https://www.econbiz.de/10011346282
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 the effects of better algorithmic demand forecasting on collusive profits. We show that the comparative statics crucially depend on the whether actions are observable. Thus, the optimal antitrust policy needs to take into account the institutional settings of the industry in question....
Persistent link: https://www.econbiz.de/10013093034
less inclined to collude than men when collusion harms a third party. No gender difference can be found in the absence of a … distance is small they hardly behave collusively when collusion harms a third party. …
Persistent link: https://www.econbiz.de/10012938866
policy. We address four core subject areas: market power, collusion, mergers between competitors, and monopolization. In each …
Persistent link: https://www.econbiz.de/10014023495
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
define their objective functions. Our analysis focuses on the bearings of CSR on collusion over an infinite horizon … surplus has a pro-competitive effect under both full and partial collusion. Conversely, a higher impact of productivity on … pollution has an anti-competitive effect under partial collusion, while exerting no effect under full collusion. Under partial …
Persistent link: https://www.econbiz.de/10011737085