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Harrington, Joseph E. - 2005

This study characterizes the corporate leniency policy that minimizes the frequency with which collusion occurs. Though … it can be optimal to provide only partial leniency, plausible sufficient conditions are provided whereby the antitrust … when amnesty is awarded, though it can be optimal to award amnesty even when the antitrust authority is very likely to win …

Persistent link: https://www.econbiz.de/10010293443

Cartel pricing dynamics in the presence of an antitrust authority

Harrington, Joseph E. - 2002

Price-fixing is characterized when firms are concerned about creating suspicions that a cartel has formed. Antitrust … stability of the cartel. While antitrust laws can lower collusive prices, they can also raise them by making it easier for firms …

Persistent link: https://www.econbiz.de/10010293446

Optimal cartel pricing in the presence of an antitrust authority

Harrington, Joseph E. - 2001

Price dynamics are characterized when a price-fixing cartel is concerned about creating suspicions of the presence of a cartel A dynamical extension of static models yields the counterfactual prediction that the cartel initially raises price and then gradually lowers it An alternative...

Persistent link: https://www.econbiz.de/10010293483

Endogenous Cartel Formation with Heterogeneous Firms

Bos, Iwan; Harrington, Joseph E. - 2008

In the context of an infinitely repeated capacity-constrained price game, we endogenize the composition of a cartel when .rms are heterogeneous in their capacities. When .rms are sufficiently patient, there exists a stable cartel involving the largest .rms. A .rm with sufficiently small capacity...

Persistent link: https://www.econbiz.de/10010277525

How Limiting Deceptive Practices Harms Consumers

Piccolo, Salvatore; Tedeschi, Piero; Ursino, Giovanni - 2015

There are two competing sellers of an experience good, one offers high quality, one low. The low-quality seller can engage in deceptive advertising, potentially fooling a buyer into thinking the product is better than it is. Although deceptive advertising might seem to harm the buyer, we show...

Persistent link: https://www.econbiz.de/10011739597

Deceptive Advertising with Rational Buyers

Piccolo, Salvatore; Tedeschi, Piero; Ursino, Giovanni - 2015

We study a game in which two competing sellers supplying experience goods of different quality can induce a perspective buyer into a bad purchase through (costly) deceptive advertising. We characterize the equilibrium set of the game and argue that an important class of these outcomes features...

Persistent link: https://www.econbiz.de/10011739599

The Interaction Between Technology Adoption and TradeWhen Firms are Heterogeneous

Unel, Bulent - Louisiana State University <Baton Rouge, La.> / E. J. … - 2010

This paper develops a monopolistic competition model with heterogeneous firms tostudy the interaction between technology adoption and trade in a world of two countriesfacing different technology adoption costs. It shows that a reduction in the technologyadoption cost in one country increases the...

Persistent link: https://www.econbiz.de/10009302524

Quality Heterogeneity andGlobal Economic Growth

Dinopoulos, Elias; Unel, Bulent - Louisiana State University <Baton Rouge, La.> / E. J. … - 2009

This paper develops a fully-endogenous, variety-expansion growth model with firm-specific quality heterogeneity, limit pricing, and an endogenous distribution of markups.Trade induces only firms with high-quality products to export, whereas firms with low-quality products serve only the domestic...

Persistent link: https://www.econbiz.de/10009302529

Price discrimination and business-cycle risk

Cornia, Marco; Gerardi, Kristopher S.; Shapiro, Adam Hale - 2011

A parsimonious theoretical model of second degree price discrimination suggests that the business cycle will affect the degree to which firms are able to price-discriminate between different consumer types. We analyze price dispersion in the airline industry to assess how price discrimination...

Persistent link: https://www.econbiz.de/10010292230

Undocumented worker employment and firm survivability

Brown, J. David; Hotchkiss, Julie L.; Quispe-Agnoli, Myriam - 2008

Do firms employing undocumented workers have a competitive advantage? Using administrative data from the state of Georgia, this paper investigates the incidence of undocumented worker employment across firms and how it affects firm survival. Firms are found to engage in herding behavior, being...

Persistent link: https://www.econbiz.de/10010292269