This file is part of IDEAS , which uses RePEc data
[ Papers |
Articles |
Software |
Books |
Chapters |
Authors |
Institutions |
JEL Classification |
NEP reports |
Search |
New papers by email |
Author registration |
Rankings |
Volunteers |
FAQ |
Blog |
Help! ]
Multimarket Contact, Imperfect Monitoring, and Implicit Collusion Author info | Abstract | Publisher info | Download info | Related research | Statistics Hitoshi Matsushima (Faculty of Economics, University of Tokyo.)
Additional information is available for the following
registered author(s):
This paper presents a theoretical foundation of the possibility that multimarket contact enhances firms' abilities to sustain implicit collusion. When firms operate in a single market and cannot perfectly monitor the opponents' choices of supply, it is impossible to achieve efficiency among these firms in a self-enforcing way, even though these firms have the long-term strategic relationship. By using models of infinitely repeated game with discounting, we shows that when firms encounter each other in a number of distinct markets and the degree of multimarket contact is large enough, efficiency can be approximately sustained by a subgame perfect equilibrium. This efficiency theorem in the imperfect monitoring case holds under almost the same condition on the discount factor as the perfect monitoring case.
To download:
If you experience problems downloading a file, check if you have the
proper application to
view it first. Information about this may be contained
in the File-Format links below. In case of further problems read
the IDEAS help
page . Note that these files are not on the IDEAS
site. Please be patient as the files may be large.
Paper provided by CIRJE, Faculty of Economics, University of Tokyo in its series CIRJE F-Series with number
CIRJE-F-24.
Download reference. The following formats are available: HTML
(with abstract ),
plain text
(with abstract ),
BibTeX ,
RIS (EndNote, RefMan, ProCite),
ReDIF
Length: 24 pages
Date of creation: Oct 1998Date of revision:
Handle: RePEc:tky:fseres:98cf24Contact details of provider: Web page: http://www.e.u-tokyo.ac.jp/cirje/index.htm
For technical questions regarding this item, or to correct its listing, contact: ().
Keywords: Other versions of this item:
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.: Bulow, Jeremy I & Geanakoplos, John D & Klemperer, Paul D, 1985.
"Multimarket Oligopoly: Strategic Substitutes and Complements ,"
Journal of Political Economy ,
University of Chicago Press, vol. 93(3), pages 488-511, June.
[Downloadable!] (restricted)
Abreu, Dilip & Milgrom, Paul & Pearce, David, 1991.
"Information and Timing in Repeated Partnerships ,"
Econometrica ,
Econometric Society, vol. 59(6), pages 1713-33, November.
[Downloadable!] (restricted)
Other versions:
Abreu, D. & Milgrom, P. & Pearce, D., 1990.
"Information And Timing In Repeated Partnerships ,"
Papers
e-90-14, Stanford - Hoover Institution.
David G. Pearce & Dilip Abreu & Paul R. Milgrom, 1988.
"Information and Timing in Repeated Partnerships ,"
Cowles Foundation Discussion Papers
875, Cowles Foundation, Yale University.
[Downloadable!] Matsushima, Hitoshi, 1989.
"Efficiency in repeated games with imperfect monitoring ,"
Journal of Economic Theory ,
Elsevier, vol. 48(2), pages 428-442, August.
[Downloadable!] (restricted)
Green, Edward J & Porter, Robert H, 1984.
"Noncooperative Collusion under Imperfect Price Information ,"
Econometrica ,
Econometric Society, vol. 52(1), pages 87-100, January.
[Downloadable!] (restricted)
Other versions: Mueller, Dennis C., 1977.
"The effects of conglomerate mergers : A survey of the empirical evidence ,"
Journal of Banking & Finance ,
Elsevier, vol. 1(4), pages 315-347, December.
[Downloadable!] (restricted)
Fudenberg, Drew & Levine, David I & Maskin, Eric, 1994.
"The Folk Theorem with Imperfect Public Information ,"
Econometrica ,
Econometric Society, vol. 62(5), pages 997-1039, September.
[Downloadable!] (restricted)
Other versions:
Drew Fudenberg & David K. Levine & Eric Maskin, 1994.
"The Folk Theorem with Imperfect Public Information ,"
Levine's Working Paper Archive
2058, David K. Levine.
[Downloadable!] Fudenberg, D. & Levine, D.K. & Maskin, E., 1989.
"The Folk Theorem With Inperfect Public Information ,"
Working papers
523, Massachusetts Institute of Technology (MIT), Department of Economics.
Drew Fudenberg & David K. Levine & Eric Maskin, 1994.
"The Folk Theorem with Imperfect Public Information ,"
Levine's Working Paper Archive
394, David K. Levine.
[Downloadable!] Radner, Roy, 1986.
"Repeated Partnership Games with Imperfect Monitoring and No Discounting ,"
Review of Economic Studies ,
Blackwell Publishing, vol. 53(1), pages 43-57, January.
[Downloadable!] (restricted)
Abreu, Dilip, 1988.
"On the Theory of Infinitely Repeated Games with Discounting ,"
Econometrica ,
Econometric Society, vol. 56(2), pages 383-96, March.
[Downloadable!] (restricted)
Michihiro Kandori & Hitoshi Matsushima, 1998.
"Private Observation, Communication and Collusion ,"
Econometrica ,
Econometric Society, vol. 66(3), pages 627-652, May.
Radner, Roy & Myerson, Roger & Maskin, Eric, 1986.
"An Example of a Repeated Partnership Game with Discounting and with Uniformly Inefficient Equilibria ,"
Review of Economic Studies ,
Blackwell Publishing, vol. 53(1), pages 59-69, January.
[Downloadable!] (restricted)
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)
Matsushima, Hitoshi, 2001.
"Multimarket Contact, Imperfect Monitoring, and Implicit Collusion ,"
Journal of Economic Theory ,
Elsevier, vol. 98(1), pages 158-178, May.
[Downloadable!] (restricted)
Other versions: 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.
[Downloadable!] (restricted)
Kreps, David M & Wilson, Robert, 1982.
"Sequential Equilibria ,"
Econometrica ,
Econometric Society, vol. 50(4), pages 863-94, July.
[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.)
Hitoshi Matsushima, 2002.
"Repeated Games with Correlated Private Monitoring and Secret Price Cuts ,"
CIRJE F-Series
CIRJE-F-154, CIRJE, Faculty of Economics, University of Tokyo.
[Downloadable!]
Hitoshi Matsushima & Koichi Miyazaki & Nobuyuki Yagi, 2006.
"Role of Linking Mechanisms in Multitask Agency with Hidden Information ,"
CIRJE F-Series
CIRJE-F-401, CIRJE, Faculty of Economics, University of Tokyo.
[Downloadable!]
Steffen Lippert & Giancarlo Spagnolo, 2004.
"Networks of Relations ,"
Discussion Papers
28, SFB/TR 15 Governance and the Efficiency of Economic Systems, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
[Downloadable!]
Other versions: Hitoshi Matsushima, 1998.
"Multimarket Contact, Imperfect Monitoring, and Implicit Collusion ,"
CIRJE F-Series
CIRJE-F-24, CIRJE, Faculty of Economics, University of Tokyo.
[Downloadable!]
Other versions: Lippert, Steffen & Spagnolo, Giancarlo, 2005.
"Networks of Relations and Social Capital ,"
CEPR Discussion Papers
5078, C.E.P.R. Discussion Papers.
[Downloadable!] (restricted)
Hitoshi Matsushima, 2001.
"The Folk Theorem with Private Monitoring ,"
CIRJE F-Series
CIRJE-F-123, CIRJE, Faculty of Economics, University of Tokyo.
[Downloadable!]
Hitoshi Matsushima, 2000.
"The Folk Theorem with Private Monitoring and Uniform Sustainability ,"
CIRJE F-Series
CIRJE-F-84, CIRJE, Faculty of Economics, University of Tokyo.
[Downloadable!]
Ichiro Obara, 2004.
"Firm Reputation and Horizontal Integration (with H. Cai) ,"
UCLA Economics Online Papers
318, UCLA Department of Economics.
[Downloadable!]
Hitoshi Matsushiima, 2006.
"Relative Performance Evaluation between Multitask Agents ,"
CIRJE F-Series
CIRJE-F-419, CIRJE, Faculty of Economics, University of Tokyo.
[Downloadable!]
Hitoshi Matsushima, 2003.
"Multi-Group Incentives ,"
CIRJE F-Series
CIRJE-F-201, CIRJE, Faculty of Economics, University of Tokyo.
[Downloadable!]
Hitoshi Matsushima, 2003.
"Repeated Games with Private Monitoring: Two Players ,"
CIRJE F-Series
CIRJE-F-242, CIRJE, Faculty of Economics, University of Tokyo.
[Downloadable!]
Other versions: Hongbin Cai & Ichiro Obara, 2006.
"Firm Reputation and Horizontanl Integration ,"
Levine's Bibliography
321307000000000285, UCLA Department of Economics.
[Downloadable!]
Other versions: Shingo Ishiguro, 2004.
"Information Aggregation and Efficiency in Agency Contracts with Endogenous Externality ,"
Econometric Society 2004 Australasian Meetings
60, Econometric Society.
[Downloadable!]
Timothy L. Sorenson, 2007.
"Credible collusion in multimarket oligopoly ,"
Managerial and Decision Economics ,
John Wiley & Sons, Ltd., vol. 28(2), pages 115-128.
[Downloadable!]
Lucio Fuentelsaz & Jaime Gómez, .
"Multipoint Competition, Mutual Forbearance and Entry into Geographic Markets ,"
Studies on the Spanish Economy
127, FEDEA.
[Downloadable!]
Access and
download statistics Did you know? Citation analysis on IDEAS includes online papers that are freely accessible and whose text could be automatically analyzed, currently about 210000 papers.
This page was last updated on 2009-12-22.
This information is provided to you by IDEAS at the Department of Economics , College of Liberal Arts and Sciences , University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics .