Export cartels and domestic markets
AbstractThis paper considers the effect of monopoly-promoting export cartels on domestic production. It is argued that export cartels facilitate tacit collusion by monitoring defections more efficiently. This slackesn the incentive constraint of tacit collusion. Optimizing firms competing both in the domestic and export markets will often use the icnreased possiblity for collusion in both markets. A condition is given under which this is the case.
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Bibliographic InfoPaper provided by University of Copenhagen. Department of Economics. Centre for Industrial Economics in its series CIE Discussion Papers with number 1999-04.
Length: 24 pages
Date of creation: Feb 1999
Date of revision:
Publication status: Published in: Journal of Industry, Competition and Trade 2(3), 223-246, 2002
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More information through EDIRC
export cartels; tacit collusion; multimarket contact;
Other versions of this item:
- L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
- L40 - Industrial Organization - - Antitrust Issues and Policies - - - General
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- Schmidt, Klaus M. & Schnitzer, Monika, 1995.
"The interaction of explicit and implicit contracts,"
Elsevier, vol. 48(2), pages 193-199, May.
- Monika Schnitzer, 1994. "The Interaction of Explicit and Implicit Contracts," Discussion Paper Serie A 452, University of Bonn, Germany.
- B. Douglas Bernheim & Michael D. Whinston, 1990. "Multimarket Contact and Collusive Behavior," RAND Journal of Economics, The RAND Corporation, vol. 21(1), pages 1-26, Spring.
- Friedman, James W, 1971. "A Non-cooperative Equilibrium for Supergames," Review of Economic Studies, Wiley Blackwell, vol. 38(113), pages 1-12, January.
- Hans-Theo Normann, 2001. "Exchange Agreements Facilitate Collusion," German Economic Review, Verein für Socialpolitik, vol. 2(2), pages 113-125, 05.
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