Competitive Prices as Profit-Maximizing Cartel Prices

Research, Preprint English OPEN
Houba, H.E.D.; Motchenkova, E.I.; Wen, Q.;
  • Publisher: Tinbergen Institute Amsterdam and Rotterdam
  • Subject: Repeated game | Antitrust enforcement, Cartel, Oligopoly, Repeated game | L4 | Antitrust enforcement | Oligopoly | Rechtsdurchsetzung | C7 | Oligopol | Kartellrecht | Antitrust enforcement; Cartel; Oligopoly; Repeated game | Cartel | Wiederholte Spiele | Theorie
    • jel: jel:L4 | jel:C7
      ddc: ddc:330

This discussion paper has resulted in a publication in <I>Economics Letters</I>, 114, 39-42.<P> Even under antitrust enforcement, firms may still form a cartel in an infinitely-repeated oligopoly model when the discount factor is sufficiently close to one. We present a ... View more
  • References (5)

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    [2] Harrington, J. (2004). Cartel pricing dynamics in the presence of an antitrust authority. The Rand Journal of Economics 35, 651-673.

    [3] Harrington, J. (2005). Optimal cartel pricing in the presence of an antitrust authority. International Economic Review 46, 145-170.

    [4] Motta, M. and M. Polo (2003). Leniency programs and cartel prosecution. International Journal of Industrial Organization 21, 347-379

    [5] Rey, P. (2003). Towards a theory of competition policy. In M. Dewatripont, L. Hansen, and S. Turnovsky (Eds.), Advances in Economics and Econometrics: Theory and Applications. Cambridge University Press.

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