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Spaced Out Monopolies: Theory and Empirics of Alternating Product Releases

Author

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  • Arthur Zillante

    (ICES, George Mason University)

Abstract

An oft-neglected pattern of behavior occurs when firms time the release of their products so that they are not released on the same date. The practice is potentially collusive, so there may be legitimate antitrust concerns. This paper presents a model of this behavior, the alternating periods monopoly (APM). A comparison of the APM with other sustainable methods of collusion shows the conditions under which the APM is preferred. I develop an empirical test to detect the APM, and use data from the baseball card industry to investigate the possible use of an APM.

Suggested Citation

  • Arthur Zillante, 2005. "Spaced Out Monopolies: Theory and Empirics of Alternating Product Releases," Industrial Organization 0505008, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwpio:0505008
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    References listed on IDEAS

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    Cited by:

    1. Todd R. Kaplan & Bradley J. Ruffle, 2012. "Which Way to Cooperate," Economic Journal, Royal Economic Society, vol. 122(563), pages 1042-1068, September.
    2. Andrea Amelio & Sara Biancini, 2010. "Alternating Monopoly And Tacit Collusion," Journal of Industrial Economics, Wiley Blackwell, vol. 58(2), pages 402-423, June.

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    More about this item

    Keywords

    Noncooperative strategies; alternating periods monopoly; duration analysis;
    All these keywords.

    JEL classification:

    • L - Industrial Organization

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