| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 5057683 | Economics Letters | 2017 | 4 Pages |
Abstract
â¢Conventional wisdom is that collusion between firms will be destabilized when they produce closer substitutes of products.â¢We show that in the presence of strong network externalities, this result no longer holds.â¢Collusion becomes more sustainable for closer substitutes of products under relatively strong network externalities.
Conventional wisdom is that collusion between firms will be destabilized when they produce closer substitutes of products. We show that, in the presence of strong network externalities, this result no longer holds, and collusion becomes more sustainable for closer substitutes of products under relatively strong network externalities.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Ruichao Song, Leonard F.S. Wang,