Title of article
Price or quantity in tacit collusion?
Author/Authors
Luca Lambertini، نويسنده , , Christian Schultz، نويسنده ,
Issue Information
روزنامه با شماره پیاپی سال 2003
Pages
7
From page
131
To page
137
Abstract
We investigate the choice of market variable, price or quantity, of an optimal implicit cartel. If the discount factor is high, the cartel can realize the monopoly profit in both cases. Otherwise, it is optimal for the cartel to rely on quantities in the collusive phase if goods are substitutes and prices if goods are complements. The reason is that this minimizes the gains from deviations from collusive play.
Keywords
Product differentiation , Partial collusion
Journal title
Economics Letters
Serial Year
2003
Journal title
Economics Letters
Record number
435094
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