Lisa R. Anderson () (Department of Economics, College of William and Mary) Beth A. Freeborn () (Department of Economics, College of William and Mary) Charles A. Holt () (Department of Economics, University of Virginia)
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We study the effect of demand structure on the ability of subjects to tacitly collude on prices by considering Bertrand substitutes and Bertrand complements. We find evidence of collusion in the complements treatment, but no such evidence in the substitutes treatment. This finding is somewhat in contrast with Potters and Suetens (2007) who observe tacit collusion in two treatments with similar underlying demand structures but with no market context.
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Paper provided by Department of Economics, College of William and Mary in its series Working Papers with number
73.
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