Collusive price rigidity under price-matching punishments

By analysing an infinitely repeated game where unit costs alternate stochastically between low and high states and where firms follow a price-matching punishment strategy, we demonstrate that the best collusive prices are rigid over time when the two cost levels are sufficiently close. This provides...

Full description

Saved in:
Bibliographic Details
Main Author: Luke Garrod
Format: Default Conference proceeding
Published: 2011
Subjects:
Other economics not elsewhere classified
Tacit collusion
Kinked demand curve
Price rigidity
Economics not elsewhere classified
Online Access:https://hdl.handle.net/2134/16800
Tags: Add Tag
No Tags, Be the first to tag this record!

Internet

https://hdl.handle.net/2134/16800

Similar Items