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Firm-specific information and explicit collusion in experimental oligopolies

Gomez-Martin, Francisco; Onderstal, Sander; Sonnemans, Joep - 2015

We experimentally study the effect of information about competitors ́actions on cartel stability and firms ́incentives …

Persistent link: https://www.econbiz.de/10010532614

Fighting collusion by permitting price discrimination

Helfrich, Magdalena; Herweg, Fabian - 2016

We investigate the effect of a ban on third-degree price discrimination on the sustainability of collusion. We build a model with two firms that may be able to discriminate between two consumer groups. Two cases are analyzed: (i) Best-response symmetries so that profits in the static Nash...

Persistent link: https://www.econbiz.de/10011434582

R&D cooperatives and market collusion : a global dynamic approach

Hinloopen, Jeroen; Smrkolj, Grega; Wagener, Florian … - 2016

We present a continuous-time generalization of the seminal R&D model of d'Aspremont and Jacquemin (American Economic Review, 1988) to examine the trade-off between the benefits of allowing firms to cooperate in R&D and the corresponding increased potential for product market collusion. We...

Persistent link: https://www.econbiz.de/10011520481

Cartels and Collusion - Empirical Evidence

Levenstein, Margaret C. - 2012

services, and these cartels typically last between five and eight years. The most important determinant of cartel breakup is …. While scholars and policy makers have often been concerned that business cycle downturns are associated with cartel … competitive intensity than macroeconomic fluctuations. Similarly, cartel breakup does not evidence strong cyclicality …

Persistent link: https://www.econbiz.de/10013097332

Competition and Collusion with Fixed Output

Zenger, Hans - 2013

In many industries, output is fixed by exogenous constraints, so firms compete by allocating a given stock of supplies between different markets. This paper shows that collusion in such industries leads firms to shift output from high-margin markets to low-margin markets. As a result, welfare is...

Persistent link: https://www.econbiz.de/10013083114

Collusion by algorithm: the role of unobserved actions

Martin, Simon; Rasch, Alexander - 2022

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

R&D Cooperatives and Market Collusion : A Global Dynamic Approach

Hinloopen, Jeroen - 2017

We present a continuous-time generalization of the seminal R&D model of d'Aspremont and Jacquemin (The American Economic Review 78(5): 1133–1137, 1988) to examine the trade-off between the benefits of allowing firms to cooperate in R&D and the corresponding increased potential for product...

Persistent link: https://www.econbiz.de/10012963271

Gender and collusion

Haucap, Justus; Heldman, Christina; Rau, Holger A. - 2022

Many cartels are formed by individual managers of different firms, but not by firms as collectives. However, most of the literature in industrial economics neglects individuals' incentives to form cartels. Although oligopoly experiments reveal important insights on individuals acting as firms,...

Persistent link: https://www.econbiz.de/10012938866

Post-Cartel Tacit Collusion : Determinants, Consequences, and Prevention

Chowdhury, Subhasish M. - 2020

We experimentally investigate the determinants of post-cartel tacit collusion (PCTC), the effects of PCTC on market … determined both by collusive price hysteresis and learning about cartel partners' characteristics and strategies. As a result, it … is also strongly related to the preceding cartel success. PCTC generates a downward bias in the estimated cartel …

Persistent link: https://www.econbiz.de/10012823438

Cartel Detection and Monitoring : A Look Forward

Deng, Ai - 2017

There is a growing literature in industrial organization on the use of empirical screens to detect cartels. I discuss several methodological issues that have emerged from this literature, and explain why addressing these issues is important for gaining a better understanding of the power and...

Persistent link: https://www.econbiz.de/10012971080