On Collusion and Industry Size

In this paper we investigate the connection between the number of competitors and the sustainability of collusion within the context of a infinitely repeated symmetric Cournot model where only a subset of firms cooperate. We show that, in our model, an increase in the number of cartel firms may incr...

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Detalles Bibliográficos
Autores: Escrihuela-Villar, Marc, Guillén, Jorge
Tipo de recurso: artículo
Estado:Versión publicada
Fecha de publicación:2011
País:Perú
Institución:Universidad ESAN
Repositorio:ESAN-Institucional
Idioma:inglés
OAI Identifier:oai:repositorio.esan.edu.pe:20.500.12640/3407
Acceso en línea:https://hdl.handle.net/20.500.12640/3407
Access Level:acceso abierto
Palabra clave:Collusion
Sustainability
Fringe
Colusión
Sostenibilidad
Margen
https://purl.org/pe-repo/ocde/ford#5.02.04
Descripción
Sumario:In this paper we investigate the connection between the number of competitors and the sustainability of collusion within the context of a infinitely repeated symmetric Cournot model where only a subset of firms cooperate. We show that, in our model, an increase in the number of cartel firms may increase collusion likelihood by diminishing the negative effects for collusion of the existence of a competitive fringe. Also, we show that an increase in the number of fringe firms makes collusion harder to sustain.