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Sophisticated collusive compensation schemes such as assigning future market shares or direct transfers are frequently observed in detected cartels. We show formally why these schemes are useful for dampening deviation incentives when colluding firms are temporary asymmetric. The relative...
Persistent link: https://www.econbiz.de/10012704975
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
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/10012886259
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/10012990230
Recent experimental simulations have shown that autonomous pricing algorithms are able to learn collusive behavior and thus charge supra-competitive prices without being explicitly programmed to do so. These simulations assume, however, that both firms employ the identical price-setting...
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