
handle: 10419/56581
In many cases, collusive agreements are formed by asymmetric firms and include only a subset of the firms active in the cartelized industry. This paper endogenizes the process of cartel formation in a numeric simulation model where firms differ in marginal costs and production technologies. The paper models the incentive to collude in a differentiated products Bertrand-oligopoly. Cartels are the outcomes of a dynamic formation game in mixed strategies. I find that the Nash-equilibrium of this complex game can be obtained efficiently by a Differential Evolution stochastic optimization algorithm. It turns out that large firms have a higher probability to collude than small firms. Since firms' characteristics evolve over time, the simulation is used to generate data of costs, prices, output-quantities, and profits. This data forms the basis for an evaluation of empirical methods used in the detection of cartels.
Produktdifferenzierung, collusion, Kartell, industry simulation, C72, C51, Collusion, Cartel Detection, Cartel Formation, Differential Evolution, Heuristic Optimization, Industry Simulation, cartel detection, cartel formation, L12, Dynamisches Spiel, L13, ddc:330, differential evolution, Wettbewerbsbeschränkung, C69, Oligopol, L40, D43, heuristic optimization, Simulation, Theorie, jel: jel:D43, jel: jel:L40, jel: jel:C69, jel: jel:C72, jel: jel:C51, jel: jel:L12, jel: jel:L13
Produktdifferenzierung, collusion, Kartell, industry simulation, C72, C51, Collusion, Cartel Detection, Cartel Formation, Differential Evolution, Heuristic Optimization, Industry Simulation, cartel detection, cartel formation, L12, Dynamisches Spiel, L13, ddc:330, differential evolution, Wettbewerbsbeschränkung, C69, Oligopol, L40, D43, heuristic optimization, Simulation, Theorie, jel: jel:D43, jel: jel:L40, jel: jel:C69, jel: jel:C72, jel: jel:C51, jel: jel:L12, jel: jel:L13
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