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Tacit Collusion in a Segmented and Capacity Constrained Informal Rural Credit Market

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Author Info
Hatlebakk, M.

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Abstract

To be able to describe informal rural credit markets, we apply the Brock and Scheinkman model of a price setting and capacity constrained oligopoly, where firms tacitly collude on monopoly pricing. We generalise the model to allow for third-degree price discrimination. The interval of aggregate lending capacity that supports a counter-intuitively increasing part of the equilibrium price-function is smaller than for the uniform price case.

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Publisher Info
Paper provided by Department of Economics, University of Bergen in its series Norway; Department of Economics, University of Bergen with number 2200.

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Length: 39 pages
Date of creation: 2000
Date of revision:
Handle: RePEc:fth:bereco:2200

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Postal: Department of Economics, University of Bergen Fosswinckels Gate 6. N-5007 Bergen, Norway
Phone: (+47)55589200
Fax: (+47)55589210
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Web page: http://www.uib.no/econ/
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Related research
Keywords: DISCRIMINATION ; PRICES ; MARKET ; CREDIT;

Find related papers by JEL classification:
D43 - Microeconomics - - Market Structure and Pricing - - - Oligopoly and Other Forms of Market Imperfection
O16 - Economic Development, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment
Q14 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Finance

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