Does Collusion without Communication Exist?
AbstractTacit cartels did not arise in experimental triopoly markets even with the help of detailed instructions to prospective cartel members on how to coordinate actions. In duopoly markets tacit cartels were successful, with winning bids and supporting "pass" bids increasing gradually. A simulated third bidder, entering whit known probability, prevented the buildup of cartel prices in duopoly markets. We suggest that support for each other. In markets with more than two sellers the inability to communicate appears to prevent the creation of mutual trust.
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Bibliographic InfoPaper provided by Stockholm University, Department of Economics in its series Research Papers in Economics with number 1999:11.
Length: 15 pages
Date of creation: 14 Jul 1999
Date of revision:
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Tacit collusion; laboratory experiment;
Find related papers by JEL classification:
- C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
- L41 - Industrial Organization - - Antitrust Issues and Policies - - - Monopolization; Horizontal Anticompetitive Practices
This paper has been announced in the following NEP Reports:
- NEP-ALL-2000-01-24 (All new papers)
- NEP-EXP-2000-01-24 (Experimental Economics)
- NEP-IND-2000-01-24 (Industrial Organization)
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- Suetens S., 2004.
"Literature review: R&D cooperation in oligopoly with spill-overs: an experimental economic approach,"
2004024, University of Antwerp, Faculty of Applied Economics.
- Suetens, S., 2004. "Literature review: R&D cooperation in oligopoly with spillovers: An experimental economics approach," Open Access publications from Tilburg University urn:nbn:nl:ui:12-3529827, Tilburg University.
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