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Cartel Stability with Subjective Detection Beliefs

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Author Info
Jeroen Hinloopen () (Faculty of Economics and Econometrics, University of Amsterdam)

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Abstract

The condition is derived for Friedman 's trigger strategy to sustain a collusive market equilibrium as a noncooperative Nash equilibrium given subjective beliefs as to the antitrust authority's ability of suc- cesfully dissolving the illegal cartel.

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Publisher Info
Paper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 03-008/2.

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Date of creation: 23 Jan 2003
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Handle: RePEc:dgr:uvatin:20030008

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Related research
Keywords: Cartel stability; trigger strategy; subjective beliefs.;

Find related papers by JEL classification:
L12 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Monopoly; Monopolization Strategies
L41 - Industrial Organization - - Antitrust Issues and Policies - - - Monopolization; Horizontal Anticompetitive Practices

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  1. Harrington, Joseph E, Jr, 1987. "Collusion in Multiproduct Oligopoly Games under a Finite Horizon," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 28(1), pages 1-14, February. [Downloadable!] (restricted)
  2. Friedman, James W, 1971. "A Non-cooperative Equilibrium for Supergames," Review of Economic Studies, Blackwell Publishing, vol. 38(113), pages 1-12, January. [Downloadable!] (restricted)
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