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
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
Journal title :
Economics Letters