IDEAS home Printed from https://ideas.repec.org/a/cai/recosp/reco_573_0583.html
   My bibliography  Save this article

Enchères, concurrence par comparaison et collusion

Author

Listed:
  • Eshien Chong
  • Freddy Huet

Abstract

Yardstick competition is an incentive regulatory tool which allows the regulator to introduce virtual competition into monopolistic industries. But as with any competitive environnement, regulated firms may have incentives to collude, thereby undermining the efficiency of the regulation. We study this issue using an infinitely repeated game framework with two symmetric firms. We show that, under the condition that monopoly rights are granted for a sufficiently long period of time, the use of auctions to attribute the markets before regulating them by yardstick competition may make collusion relatively harder to sustain. This result pleads for the use of auctions together with yardstick competition to struggle against collusive behaviours. Classification JEL: D42, D44, L50, L51

Suggested Citation

  • Eshien Chong & Freddy Huet, 2006. "Enchères, concurrence par comparaison et collusion," Revue économique, Presses de Sciences-Po, vol. 57(3), pages 583-592.
  • Handle: RePEc:cai:recosp:reco_573_0583
    as

    Download full text from publisher

    File URL: http://www.cairn.info/load_pdf.php?ID_ARTICLE=RECO_573_0583
    Download Restriction: free

    File URL: http://www.cairn.info/revue-economique-2006-3-page-583.htm
    Download Restriction: free

    References listed on IDEAS

    as
    1. Cabral, Luis M. B., 2000. "Introduction to Industrial Organization," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262032864, January.
    2. Tangeras, Thomas P., 2002. "Collusion-proof yardstick competition," Journal of Public Economics, Elsevier, pages 231-254.
    3. Eshien Chong & Freddy Huet, 2009. "Yardstick Competition, Franchise Bidding and Firms’ Incentives to Collude," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 35(1), pages 149-169, September.
    4. James W. Friedman, 1971. "A Non-cooperative Equilibrium for Supergames," Review of Economic Studies, Oxford University Press, vol. 38(1), pages 1-12.
    5. Auriol, Emmanuelle & Laffont, Jean-Jacques, 1992. "Regulation by Duopoly," Journal of Economics & Management Strategy, Wiley Blackwell, pages 507-533.
    6. Cowan, Simon, 1997. "Competition in the Water Industry," Oxford Review of Economic Policy, Oxford University Press, vol. 13(1), pages 83-92, Spring.
    7. Gasmi, F & Ivaldi, M & Laffont, Jean Jacques, 1994. "Rent Extraction and Incentives for Efficiency in Recent Regulatory Proposals," Journal of Regulatory Economics, Springer, vol. 6(2), pages 151-176, May.
    8. Rothschild, R., 1999. "Cartel stability when costs are heterogeneous," International Journal of Industrial Organization, Elsevier, pages 717-734.
    Full references (including those not matched with items on IDEAS)

    More about this item

    JEL classification:

    • D42 - Microeconomics - - Market Structure, Pricing, and Design - - - Monopoly
    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions
    • L50 - Industrial Organization - - Regulation and Industrial Policy - - - General
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cai:recosp:reco_573_0583. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jean-Baptiste de Vathaire). General contact details of provider: http://www.cairn.info/revue-economique.htm .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.