Páscoa, Mário Rui; Moreno-García, Emma; Faias, Marta - In: Review of Economic Design 7 (2002) 1, pp. 93-104
In this paper, we propose a perfect competition test which checks whether arbitrarily small coalitions of firms, which behave strategically on costs, are able to manipulate prices in their own benefit. We apply this test to economies with a continuum of differentiated producers. We show that,...