Sustainability of collusion with imperfect price discrimination and inelastic demand functions
AbstractWe study the impact of product differentiation on collusion sustainability in the case of imperfect price discrimination and inelastic demand functions. We show that differentiation facilitates the sustainability of collusion. Therefore, the indifference result of Gupta and Venkatu (2002) does not hold when imperfect price discrimination is introduced.
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Bibliographic InfoArticle provided by AccessEcon in its journal Economics Bulletin.
Volume (Year): 29 (2009)
Issue (Month): 3 ()
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Imperfect price discrimination Tacit collusion;
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- L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
- D4 - Microeconomics - - Market Structure and Pricing
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