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In this note we analyze the sustainability of collusion in a game of repeated interaction where firms can price … improvement in data quality it is more difficult to sustain collusion. …
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that low-price guarantees robustly facilitate tacit collusion, by reducing a deviating firm's immediate deviation profit …
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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...
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; this is equivalent to modeling firms as an implicit cartel playing a punishment game. We show that coordination can …
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This paper studies evolution of firms' behavior in a networked Bertrand oligopoly market, in which firms who are located on vertices of a network compete in price with their neighbors. This network model is also applied to a market with multi-dimensionally differentiated products. In a...
Persistent link: https://www.econbiz.de/10012902133
How does the organizational form of loan syndicates evolve and what are the effects on price collusion? We develop a … with Hatfield et al. (2017), we find however that price collusion of concentrated syndicates only occurs during periods of … concentration affect price collusion …
Persistent link: https://www.econbiz.de/10012911030
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
algorithmic pricing agents on markets will increase occurrences of tacit collusion by orders of magnitude, and well beyond the … scale on markets can lead to tacit collusion. While we do not deny the fact that smart pricing agents can enter into tacit … collusion and that regulators may be right to be vigilant, we find that there are several technological challenges in the …
Persistent link: https://www.econbiz.de/10012853668