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In this paper, collusive price leadership in homogeneous good capacity-constrained repeated price competition is examined. In the stage game, firms choose their timing of price setting. Although setting a price early is disadvantageous per se, a large firm has an incentive to move early in order...
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We discuss competition between high-quality private service providers that maximize their own profits and a low-quality public service provider that maximizes social surplus. Two heterogeneous consumer groups exist: those who demand only high-quality services and those who care little whether...
Persistent link: https://www.econbiz.de/10010625793
This paper examines detected bid rigging mechanisms based on the decisions of the Japan Fair Trade Commission (JFTC) from April 1996 to December 2005. We first develop some indicators that represent important characteristics of the ring mechanism from a theoretical and empirical point of view....
Persistent link: https://www.econbiz.de/10008914649
Two models of competition between high-end and low-end products benefiting the high-end firms are presented. One is a quantity competition model, and the other is a price competition model with product differentiation. The key factor is the existence of two heterogeneous consumer groups: those...
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