Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5058389 | Economics Letters | 2016 | 4 Pages |
Abstract
•There may not exist a common collusive price that raises all firms’ profits.•There always exists a common minimum price that raises all firms’ profits.•Trade associations have promoted a minimum recommended price.
When firms are heterogeneous, there may not exist a common collusive price that raises all firms’ profits. However it is shown that there always exists a common minimum price that raises all firms’ profits.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics