| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 5078174 | International Journal of Industrial Organization | 2012 | 12 Pages |
Abstract
⺠We analyse an infinitely repeated game of the rivalry of the kinked demand curve. ⺠The best collusive prices can be rigid over time despite small cost changes. ⺠The price is between the low-cost monopoly price and the high-cost Nash price. ⺠The present discounted values of profits are decreasing in the level of high costs. ⺠Price rigidity depends on firm numbers, differentiation and high-cost phase duration.
Related Topics
Social Sciences and Humanities
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Economics and Econometrics
Authors
Luke Garrod,