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conditions in previous studies were unfavorable for collusion which may have been responsible for not finding such a focal … the focal-point hypothesis. Collusion is as unlikely in markets with a price ceiling as in markets with unconstrained …
Persistent link: https://www.econbiz.de/10010273614
antitrust authorities in each market. We are concerned with how the sustainability of collusion in one local market is affected … by the existence of collusion in other markets when they are linked by demand relationships. The interdependence of … collusion sustainability across markets leads to potential externalities in antitrust enforcement across jurisdictions. As a …
Persistent link: https://www.econbiz.de/10010274002
A finite number of sellers (n) compete in schedules to supply an elastic demand. The costs of the sellers have uncertain common and private value components and there is no exogenous noise in the system. A Bayesian supply function equilibrium is characterized; the equilibrium is privately...
Persistent link: https://www.econbiz.de/10010276986
This paper empirically investigates market behavior and firms’ lobbying in a unified structural setup. In a sequential game, where firms lobby for regulation before they compete in the product market, we derive a testable measure of lobbying coordination. Applying the setting to the early U.S....
Persistent link: https://www.econbiz.de/10010278063
than collusion. Focal prices are mostly lower than expected from hedonic projections. In cases where the decisions on focal …
Persistent link: https://www.econbiz.de/10010278075
difference in average total outputs across data aggregation and information settings. However, we observe more collusion when …
Persistent link: https://www.econbiz.de/10011444293
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/10011451402
Economic theory provides ambiguous and conflicting predictions about the association between algorithmic pricing and competition. In this paper we provide the first empirical analysis of this relationship. We study Germany’s retail gasoline market where algorithmic-pricing software became...
Persistent link: https://www.econbiz.de/10012269591
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/10012886573
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/10012990589