Title
On collusion sustainability with stacked reversion
Other title
Održivost koluzije pri 'stacked reversion'
Date Issued
01 January 2011
Access level
open access
Resource Type
journal article
Publisher(s)
Faculty of Economics and Tourism 'Dr. Mijo Mirkovic'
Abstract
We consider a multi-period oligopoly model to analyze cartel sustainability where a subset of collusive firms is exogenously given. We assume that in case of cheating only the cheater is expelled from the cartel and collusion continues without the cheater. We show that, in our model, when firms compete in quantities and the cartel is sufficiently small, a Stackelberg leader cartel can always be sustained if firms are patient enough. Furthermore, in this case collusion is more easily sustained than when firms play grim trigger strategies. The opposite result is obtained in a price-setting supergame with differentiated products.
Start page
89
End page
98
Volume
24
Issue
2
Language
English
OCDE Knowledge area
Economía
Scopus EID
2-s2.0-79960553079
Source
Ekonomska Istrazivanja
ISSN of the container
1331677X
Sources of information: Directorio de Producción Científica Scopus