[PDF] A Dynamic Oligopoly With Collusion And Price Wars eBook

Author : Chaim Fershtman
Publisher :
Page : 56 pages
File Size : 26,41 MB
Release : 1999
Category : Competition
ISBN :

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Most of the theoretical work on collusion and price wars assumes identical firms and an unchanging environment, assumptions which are at odds with what we know about most industries. Further that literature focuses on the impact of collusion on prices. Whether an industry can support collusion also effects investment incentives and hence the variety, cost, and quality of the products marketed. We provide a collusive framework with heterogeneity among firms, investment, entry, and exit. It is a symmetric information model in which it is hard to sustain collusion when either one of the firms does not keep up with the advances of its competitors, or a low quality' entrant enters. In either case there will be an active firm that is quite likely to exit after it deviates, but if one of the competitors is near an exit state the other incumbent(s) has an incentive to price predatorily (that is to deviate themselves). We use numerical analysis to compare an institutional structure that allows for collusion to one which does not (perhaps because of an active antitrust authority). Price paths clearly differ in the two environments; in particular only the collusive industry generates price wars. The collusive industry offers both more and higher quality products to consumers, albeit often at a higher price. The positive effect of collusion on the variety and quality of products marketed more than compensates consumers for the negative effect of collusive prices, so that consumer surplus is larger in the collusive environment.

Author : Leslie Neubecker
Publisher : Springer Science & Business Media
Page : 237 pages
File Size : 31,79 MB
Release : 2006-02-17
Category : Business & Economics
ISBN : 3540295577

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Dynamic oligopolistic competition has implications both for the strategic management of firms and for the design of an effective competition policy. Consequently, the present book considers the issue from a private and social perspective. It discusses the potential pro- and anticollusive effects of long-term business strategies, especially for cooperation and reinvestment in production, financing and management compensation, in markets with fluctuating demand. The method of supergame theory is applied to integrate long-run decisions and different types of demand into the analysis. Aside from its contributions to the theoretical literature, the book provides valuable insights into the design of competition policy. The observed development of prices is an indicator of the extent of collusion in the market and can thereby be used to assess antitrust regulation in certain business areas, and to focus the resources of competition authorities on markets where conditions are conducive to collusion.

Author : Michael Bungert
Publisher : Springer Science & Business Media
Page : 258 pages
File Size : 11,51 MB
Release : 2012-12-06
Category : Business & Economics
ISBN : 3322816257

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Michael Bungert investigates the possibility to terminate (non-beneficial) price wars through appropriate signals and analyzes the effect of different types of signals on the price reaction behaviour of a competitor. He demonstrates that all signal types show a significant effect on the probability of a co-operative price reaction.

Author : William John 1905- Fellner
Publisher : Hassell Street Press
Page : 360 pages
File Size : 42,92 MB
Release : 2021-09-10
Category :
ISBN : 9781015210752

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This work has been selected by scholars as being culturally important and is part of the knowledge base of civilization as we know it. This work is in the public domain in the United States of America, and possibly other nations. Within the United States, you may freely copy and distribute this work, as no entity (individual or corporate) has a copyright on the body of the work. Scholars believe, and we concur, that this work is important enough to be preserved, reproduced, and made generally available to the public. To ensure a quality reading experience, this work has been proofread and republished using a format that seamlessly blends the original graphical elements with text in an easy-to-read typeface. We appreciate your support of the preservation process, and thank you for being an important part of keeping this knowledge alive and relevant.

Author : International Economic Association
Publisher : MIT Press
Page : 588 pages
File Size : 29,64 MB
Release : 1986
Category : Business & Economics
ISBN : 9780262690935

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These contributions discuss a number of important developments over the past decade in a newly established and important field of economics that have led to notable changes in views on governmental competition policies. They focus on the nature and role of competition and other determinants of market structures, such as numbers of firms and barriers to entry; other factors which determine the effective degree of competition in the market; the influence of major firms (especially when these pursue objectives other than profit maximization); and decentralization and coordination under control relationships other than markets and hierarchies.ContributorsJoseph E. Stiglitz, G. C. Archibald, B. C. Eaton, R. G. Lipsey, David Enaoua, Paul Geroski, Alexis Jacquemin, Richard J. Gilbert, Reinhard Selten, Oliver E. Williamson, Jerry R. Green, G. Frank Mathewson, R. A. Winter, C. d'Aspremont, J. Jaskold Gabszewicz, Steven Salop, Branko Horvat, Z. Roman, W. J. Baumol, J. C. Panzar, R. D. Willig, Richard Schmalensee, Richard Nelson, Michael Scence, and Partha Dasgupta

Author : D. Fudenberg
Publisher : Taylor & Francis
Page : 95 pages
File Size : 19,10 MB
Release : 2013-06-17
Category : Business & Economics
ISBN : 1136456058

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Fudenberg and Tirole use the game-theoretic issues of information, commitment and timing to provide a realistic approach to oligopoly.

Author : D. Fudenberg
Publisher : Taylor & Francis
Page : 104 pages
File Size : 17,84 MB
Release : 2013-06-17
Category : Business & Economics
ISBN : 1136456120

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Fudenberg and Tirole use the game-theoretic issues of information, commitment and timing to provide a realistic approach to oligopoly.

Author : Robert Bork
Publisher :
Page : 536 pages
File Size : 17,86 MB
Release : 2021-02-22
Category :
ISBN : 9781736089712

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The most important book on antitrust ever written. It shows how antitrust suits adversely affect the consumer by encouraging a costly form of protection for inefficient and uncompetitive small businesses.