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Collusion under Monitoring of Sales Author info | Abstract | Publisher info | Download info | Related research | Statistics Joseph E Harrington
Jr Andrzej Skrzypacz
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Collusion under imperfect monitoring is explored when firms?prices are private information and their quantities are public information; an information structure consistent with several recent price-fixing cartels such as those in lysine and vitamins. For a class of symmetric duopoly games, it is shown that symmetric equilibrium punishments cannot sustain any collusion. An asymmetric punishment is characterized which does sustain collusion and it has the firm with sales exceeding its quota compensating the firm with sales below its quota. In practice, cartels have performed such transfers through sales among the cartel members.
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Paper provided by The Johns Hopkins University,Department of Economics in its series Economics Working Paper Archive with number
509.
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Date of creation: Jun 2004Date of revision:
Mar 2005Handle: RePEc:jhu:papers:509Contact details of provider: Postal: 3400 North Charles Street Baltimore, MD 21218 Phone: 410-516-7601 Fax: 410-516-7600 Web page: http://www.econ.jhu.edu More information through EDIRC
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References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.: Abreu, Dilip & Pearce, David & Stacchetti, Ennio, 1986.
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Joseph E. Harrington, 2005.
"Optimal Cartel Pricing In The Presence Of An Antitrust Authority ,"
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Other versions: Green, Edward J & Porter, Robert H, 1984.
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Econometrica ,
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Other versions: Cabral, Luis M B & Riordan, Michael H, 1994.
"The Learning Curve, Market Dominance, and Predatory Pricing ,"
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Other versions:
Cabral, L. & Riordan, M., 1992.
"The Learning Curve, Market Dominance and Predatory Pricing ,"
Papers
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Luis M.B. Cabral & Michael Riordan, 1992.
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Joseph E Harrington Jr & Joe Chen, 2002.
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Economics Working Paper Archive
514, The Johns Hopkins University,Department of Economics, revised Sep 2004.
[Downloadable!]
Other versions:
Joseph E. Harrington, Jr. & Joe Chen, 2005.
"Cartel Pricing Dynamics with Cost Variability and Endogenous Buyer Detection ,"
CIRJE F-Series
CIRJE-F-359, CIRJE, Faculty of Economics, University of Tokyo.
[Downloadable!] Harrington, Joseph Jr. & Chen, Joe, 2006.
"Cartel pricing dynamics with cost variability and endogenous buyer detection ,"
International Journal of Industrial Organization ,
Elsevier, vol. 24(6), pages 1185-1212, November.
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"Cartel Pricing Dynamics in the Presence of an Antitrust Authority ,"
RAND Journal of Economics ,
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Other versions: Kyle Bagwell & Asher Wolinsky, 2002.
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Discussion Papers
0102-36, Columbia University, Department of Economics.
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Other versions:
Kyle Bagwell & Asher Wolinsky, 2000.
"Game Theory and Industrial Organization ,"
Discussion Papers
1307, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
[Downloadable!] Bagwell, K. & Wolinsky, A., 2000.
"Game Theory and Industrial Organization ,"
Discussion Papers
2000_01, Columbia University, Department of Economics.
Bagwell, Kyle & Wolinsky, Asher, 2002.
"Game theory and industrial organization ,"
Handbook of Game Theory with Economic Applications ,
in: R.J. Aumann & S. Hart (ed.), Handbook of Game Theory with Economic Applications, edition 1, volume 3, chapter 49, pages 1851-1895
Elsevier.
[Downloadable!] (restricted) Skrzypacz, Andrzej & Harrington, Joseph E., 2005.
"Collusion under Monitoring of Sales ,"
Research Papers
1885, Stanford University, Graduate School of Business.
[Downloadable!]
Other versions: Skrzypacz, Andrzej & Hopenhayn, Hugo, 2004.
"Tacit collusion in repeated auctions ,"
Journal of Economic Theory ,
Elsevier, vol. 114(1), pages 153-169, January.
[Downloadable!] (restricted)
Other versions:
Full
references Cited by : (explanations , Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.)
Joseph E. Harrington, Jr, 2006.
"How Do Cartels Operate? ,"
Economics Working Paper Archive
531, The Johns Hopkins University,Department of Economics.
[Downloadable!]
Skrzypacz, Andrzej & Sannikov, Yuliy, 2005.
"Impossibility of Collusion under Imperfect Monitoring with Flexible Production ,"
Research Papers
1887, Stanford University, Graduate School of Business.
[Downloadable!]
Other versions: Luís Cabral, 2005.
"Collusion Theory: Where to Go Next? ,"
Journal of Industry, Competition and Trade ,
Springer, vol. 5(3), pages 199-206, December.
[Downloadable!] (restricted)
Scholz, Julia, 2008.
"Auswirkungen vertikaler Kollusionsprobleme auf die vertragliche Ausgestaltung von Kreditverkäufen ,"
Discussion Papers in Business Administration
4581, University of Munich, Munich School of Management.
[Downloadable!]
Joseph E Harrington & Jr Andrzej Skrzypacz, 2004.
"Collusion under Monitoring of Sales ,"
Economics Working Paper Archive
509, The Johns Hopkins University,Department of Economics, revised Mar 2005.
[Downloadable!]
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