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Enchères, concurrence par comparaison et collusion

  • Eshien Chong
  • Freddy Huet

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

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Article provided by Presses de Sciences-Po in its journal Revue économique.

Volume (Year): 57 (2006)
Issue (Month): 3 ()
Pages: 583-592

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Handle: RePEc:cai:recosp:reco_573_0583
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  1. Friedman, James W, 1971. "A Non-cooperative Equilibrium for Supergames," Review of Economic Studies, Wiley Blackwell, vol. 38(113), pages 1-12, January.
  2. Tangeras, T.P., 1999. "Collusion-Proof Yardstick Competition," Papers 674, Stockholm - International Economic Studies.
  3. Eshien Chong & Freddy Huet, 2009. "Yardstick Competition, Franchise Bidding and Firms’ Incentives to Collude," Review of Industrial Organization, Springer, vol. 35(1), pages 149-169, September.
  4. Cowan, Simon, 1997. "Competition in the Water Industry," Oxford Review of Economic Policy, Oxford University Press, vol. 13(1), pages 83-92, Spring.
  5. Auriol, Emmanuelle & Laffont, Jean-Jacques, 1992. "Regulation by Duopoly," IDEI Working Papers 20, Institut d'Économie Industrielle (IDEI), Toulouse.
  6. Luís M. B. Cabral, 2000. "Introduction to Industrial Organization," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262032864, June.
  7. Rothschild, R., 1999. "Cartel stability when costs are heterogeneous," International Journal of Industrial Organization, Elsevier, vol. 17(5), pages 717-734, July.
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