Advanced Search
MyIDEAS: Login to save this article or follow this journal

Price Wars and the Stability of Collusion: A Study of the Pre-World War I Bromine Industry

Contents:

Author Info

  • Levenstein, Margaret C
Registered author(s):

    Abstract

    Between 1885 and 1914, U.S. bromine producers colluded to raise prices and profits. This collusion was disrupted by price wars. Bromine price wars are compared with the Green-Porter (1984) and Abreu-Pearce-Stacchetti (1986) models. Some price wars resulted from the imperfect monitoring problems which motivate these models. Several empirical implications of the Abreu-Pearce-Stacchetti model are borne out but the bromine industry's price wars were generally milder than contemplated by their model. More severe price wars were part of a bargaining process in which firms tried to force renegotiation to a new collusive equilibrium with a different distribution of rents. Copyright 1997 by Blackwell Publishing Ltd

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL: http://www.blackwell-synergy.com/servlet/useragent?func=synergy&synergyAction=showTOC&journalCode=joie&volume=45&issue=2&year=1997&part=null
    File Function: link to full text
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

    Bibliographic Info

    Article provided by Wiley Blackwell in its journal Journal of Industrial Economics.

    Volume (Year): 45 (1997)
    Issue (Month): 2 (June)
    Pages: 117-37

    as in new window
    Handle: RePEc:bla:jindec:v:45:y:1997:i:2:p:117-37

    Contact details of provider:
    Web page: http://www.blackwellpublishing.com/journal.asp?ref=0022-1821

    Order Information:
    Web: http://www.blackwellpublishing.com/subs.asp?ref=0022-1821

    Related research

    Keywords:

    References

    No references listed on IDEAS
    You can help add them by filling out this form.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as in new window

    Cited by:
    1. Brenner, Steffen, 2009. "An empirical study of the European corporate leniency program," International Journal of Industrial Organization, Elsevier, vol. 27(6), pages 639-645, November.
    2. Dye, Alan & Sicotte, Richard, 2006. "How brinkmanship saved Chadbourne: Credibility and the International Sugar Agreement of 1931," Explorations in Economic History, Elsevier, vol. 43(2), pages 223-256, April.
    3. Volker Nocke & Lucy White, 2003. "Do Vertical Mergers Facilitate Upstream Collusion? Second Version," PIER Working Paper Archive 05-013, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania, revised 08 Mar 2005.
    4. Fershtman, C. & Pakes, A., 1998. "A Dynamic Oligopoly with Collusion and Price Wars," Papers 26-98, Tel Aviv.
    5. Volker Nocke & Lucy White, 2003. "Do Vertical Mergers Facilitate Upstream Collusion?," PIER Working Paper Archive 03-033, Penn Institute for Economic Research, Department of Economics, University of Pennsylvania.
    6. Peter Benczur & Cosmin Ilut, 2011. "Evidence for Dynamic Contracts in Sovereign Bank Lending," Working Papers 11-06, Duke University, Department of Economics.
    7. de Roos, Nicolas, 2004. "A model of collusion timing," International Journal of Industrial Organization, Elsevier, vol. 22(3), pages 351-387, March.
    8. Garrod, Luke, 2012. "Collusive price rigidity under price-matching punishments," International Journal of Industrial Organization, Elsevier, vol. 30(5), pages 471-482.
    9. Bolotova, Yuliya V., 2009. "Cartel overcharges: An empirical analysis," Journal of Economic Behavior & Organization, Elsevier, vol. 70(1-2), pages 321-341, May.
    10. Andersson, Ola, 2006. "Bargaining in Collusive Markets," Working Papers 2006:21, Lund University, Department of Economics.

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:bla:jindec:v:45:y:1997:i:2:p:117-37. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing) or (Christopher F. Baum).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.