« "Competition Laws in Transitional Economies: A Plain-Language Approach?" on Jan 22nd - Registration is Now Open | Main | Hotelling Models with Price-Sensitive Demand and Asymmetric Transport Costs: An Application to Public Transport Scheduling »
January 17, 2013
Competitiveness and Stability of Collusive Behavior
Posted by D. Daniel Sokol
Toshihiro Matsumura, University of Tokyo - Institute of Social Science and Noriaki Matsushima, Osaka University - Institute of Social and Economic Research analyze Competitiveness and Stability of Collusive Behavior.
ABSTRACT: We investigate the relationship between the degree of competition and the stability of collusive behaviour, by introducing the element of relative performance in the objective functions of the firms. We show that an increase in the degree of competition destabilizes the collusion. This relation differs starkly in the standard symmetric Cournot and Bertrand duopoly models, with the former being more unstable than the latter.
January 17, 2013 | Permalink
TrackBack
TrackBack URL for this entry:
http://www.typepad.com/services/trackback/6a00d8341bfae553ef017ee6869d6b970d
Listed below are links to weblogs that reference Competitiveness and Stability of Collusive Behavior:
