Hsueh, Shao-Chieh; Tian, Guoqiang - Volkswirtschaftliche Fakultät, … - 2009
McAfee and McMillan (1992) investigate the coordinated biding strategies in a strong cartel, in which the cartel … members can exclude new entrants and can make transfer payments, and show that the strong cartel mechanism is incentive …-compatible and efficient. In this paper however, we show the strong cartel mechanism is no longer ratifiable in the presence of …