Showing 1 - 10 of 1,690
the link between overt collusion and price dispersion. Formal theories and observation of cartel behavior suggest that …
Persistent link: https://www.econbiz.de/10014062753
We investigate the effect of a ban on third-degree price discrimination on the sustainability of collusion. We build a …' discount factor has to be higher in order to sustain collusion in grim-trigger strategies under price discrimination than under …
Persistent link: https://www.econbiz.de/10011434582
Due to being much better documented, legal cartels have recently attracted the interest of many researchers who aim to understand the functioning of illegal cartels in detail. This paper contributes to the question of what we can learn from legal cartels by taking a closer look at the cement...
Persistent link: https://www.econbiz.de/10011334610
We provide a theory of how RPM facilitate upstream cartels absent any information asymmetries using a model with manufacturer and retailer competition. Because retailers have an effective outside option to each manufacturer’s contract, the manufacturers can only ensure contract acceptance by...
Persistent link: https://www.econbiz.de/10012201242
We analyze spying out a rival's price in a Bertrand market game with incomplete information. Spying transforms a simultaneous into a robust sequential moves game. We provide conditions for profitable espionage. The spied at firm may attempt to immunize against spying by delaying its pricing...
Persistent link: https://www.econbiz.de/10011962353
We study the welfare effects of non-binding advance price announcements. Applying a differentiated Bertrand model with horizontal products and asymmetric information, we find that such announcements can help firms to gain information on each other thereby allowing them to achieve higher profits....
Persistent link: https://www.econbiz.de/10011316431
retailers, we show that RPM facilitates manufacturer collusion when retailers have alternatives to selling a manufacturer … manufacturers to establish higher prices. The use of renegotiation-proof RPM stabilizes collusion whereas otherwise RPM can decrease … the range of discount factors which enable stable collusion. …
Persistent link: https://www.econbiz.de/10014394250
less inclined to collude than men when collusion harms a third party. No gender difference can be found in the absence of a … distance is small they hardly behave collusively when collusion harms a third party. …
Persistent link: https://www.econbiz.de/10012938866
The firms in this model set non-binding list prices before competing for buyers by non-cooperatively granting discounts. Each firm has an incentive to set a high list price if, for example, the customers anchor their willingness-to-pay on the list price. However, list price competition occurs if...
Persistent link: https://www.econbiz.de/10012314193
Antidumping creates opportunities for abuse to stifle market competition. Whether cartels actually abuse trade policy for anticompetitive purposes remains an open question in the literature. To address this gap, we construct a novel dataset that matches cartel investigations with trade data at...
Persistent link: https://www.econbiz.de/10012373130