Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
7359645 | Journal of Economic Theory | 2015 | 24 Pages |
Abstract
This paper shows that a cartel that observes neither costs, prices, nor sales may still enforce a collusive agreement by tying each firm's continuation profit to the truncated current profits of the other firms. The mechanism applies to both price and quantity competition, and the main features are broadly consistent with common cartel practice identified by Harrington and Skrzypacz [24].
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Jimmy Chan, Wenzhang Zhang,