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Collusion in Industrial Economics—A Survey

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  • Switgard Feuerstein

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Abstract

The aim of this paper is to summarize the theory of (implicit) collusion in the framework of infinitely repeated games, and in particular, to survey the comprehensive literature exploring which factors make collusion easier or more difficult to sustain. On this basis, the existing empirical studies and the experimental results will be discussed. Policy options as e.g. leniency programs are also analyzed. Although the number of clear cut policy conclusions is limited, understanding thoroughly the mechanisms of collusion is important for (anti-trust) policies. Copyright Springer Science + Business Media, Inc. 2005

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File URL: http://hdl.handle.net/10.1007/s10842-005-4868-5
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Bibliographic Info

Article provided by Springer in its journal Journal of Industry, Competition and Trade.

Volume (Year): 5 (2005)
Issue (Month): 3 (December)
Pages: 163-198

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Handle: RePEc:kap:jincot:v:5:y:2005:i:3:p:163-198

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Web page: http://springerlink.metapress.com/link.asp?id=105724

Related research

Keywords: collusion; capacity constraints; international oligopolies; competition policy; leniency programs;

References

References listed on IDEAS
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Citations

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Cited by:
  1. Klaus Friesenbichler & George Clarke & Michael Wong, 2014. "Price competition and market transparency: evidence from a random response technique," Empirica, Springer, vol. 41(1), pages 5-21, February.
  2. Luís Cabral, 2005. "Collusion Theory: Where to Go Next?," Journal of Industry, Competition and Trade, Springer, vol. 5(3), pages 199-206, December.
  3. Oliver Budzinski & Arndt Christiansen, 2007. "The Oracle/PeopleSoft Case: Unilateral Effects, Simulation Models and Econometrics in Contemporary Merger Control," Marburg Working Papers on Economics 200702, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
  4. repec:hal:cesptp:hal-00709093 is not listed on IDEAS
  5. Hwa Ryung Lee, 2010. "Multimarket contact effect on collusion through diversification," IEW - Working Papers 501, Institute for Empirical Research in Economics - University of Zurich.
  6. Pedro Mendi & Rafael Moner-Colonques & José Sempere-Monerris, 2011. "Vertical integration, collusion, and tariffs," SERIEs, Spanish Economic Association, vol. 2(3), pages 359-378, September.
  7. Doruk Iris & Luís Santos-Pinto, 2008. "Tacit Collusion under Fairness and Reciprocity," Cahiers de Recherches Economiques du Département d'Econométrie et d'Economie politique (DEEP) 09.03, Université de Lausanne, Faculté des HEC, DEEP.
  8. Aldo Montesano, 2012. "Price collusion with free entry: the parasitic competition," International Review of Economics, Springer, vol. 59(1), pages 41-65, March.
  9. Baake, Pio & von Schlippenbach, Vanessa, 2011. "Quality distortions in vertical relations," DICE Discussion Papers 18, Heinrich‐Heine‐Universität Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
  10. repec:hal:wpaper:hal-00709093 is not listed on IDEAS
  11. Zhang, Yahua & Round, David K., 2011. "Price wars and price collusion in China's airline markets," International Journal of Industrial Organization, Elsevier, vol. 29(4), pages 361-372, July.
  12. Andersson, Ola, 2008. "On the role of patience in collusive Bertrand duopolies," Economics Letters, Elsevier, vol. 100(1), pages 60-63, July.
  13. António Brandão & Joana Pinho & Hélder Vasconcelos, 2013. "Asymmetric collusion with growing demand," FEP Working Papers 510, Universidade do Porto, Faculdade de Economia do Porto.
  14. Christoph Engel, 2009. "Competition as a Socially Desirable Dilemma. Theory vs. Experimental Evidence," Working Paper Series of the Max Planck Institute for Research on Collective Goods 2009_24, Max Planck Institute for Research on Collective Goods.
  15. Chris Kuo, 2013. "Billing Abuses by the Experts: A Game-Theoretic Analysis of Legal Services," Journal of Economics and Management, College of Business, Feng Chia University, Taiwan, vol. 9(1), pages 13-30, January.
  16. Richard Schmalensee, 2012. "“On a Level with Dentists?” Reflections on the Evolution of Industrial Organization," Review of Industrial Organization, Springer, vol. 41(3), pages 157-179, November.

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