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Collusion and demand volatility

Author

Listed:
  • Michèle Breton

    (HEC Montréal and GERAD)

  • Mohammed Kharbach

    (HEC Montréal and Emirates LNG)

Abstract

In this article, we use a simple mean-variance set up, where two symmetric Â…firms are competing in quantities, and investigate the impact of demand variability on the stability of collusion.

Suggested Citation

  • Michèle Breton & Mohammed Kharbach, 2015. "Collusion and demand volatility," Economics Bulletin, AccessEcon, vol. 35(1), pages 241-246.
    • Handle: RePEc:ebl:ecbull:eb-14-00674
    as

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    File URL: http://www.accessecon.com/Pubs/EB/2015/Volume35/EB-15-V35-I1-P27.pdf
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    References listed on IDEAS

    as
    1. Hassan, Shakill, 2006. "Optimal timing of defections from price-setting cartels in volatile markets," Economic Modelling, Elsevier, vol. 23(5), pages 792-804, September.
    2. James W. Friedman, 1971. "A Non-cooperative Equilibrium for Supergames," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 38(1), pages 1-12.
    3. Wong, Kit Pong, 2008. "Does market demand volatility facilitate collusion?," Economic Modelling, Elsevier, vol. 25(4), pages 696-703, July.
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    More about this item

    Keywords

    Collusion; Volatility;

    JEL classification:

    • C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory

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