IDEAS home Printed from https://ideas.repec.org/a/che/ireepp/v10y2011i1p3-13.html
   My bibliography  Save this article

Improving understanding of collusion in intermediate microeconomics

Author

Listed:
  • Evan Moore

    (Auburn University at Montgomery)

Abstract

Standard treatments of collusion in intermediate microeconomics textbooks frequently involve a Cournot duopoly facing linear demand with constant marginal costs of production. These presentations leave students with the misunderstanding that firms jointly behaving like a single-firm monopolist and profit maximising collusion are one and the same. We present a simple and effective way for improving student comprehension of collusion; this exercise results in collusion where the duopolists produce more total output than that of a monopolist while enjoying greater joint profits. The exercise can be used to clarify and lead to a better understanding of collusion and profit maximisation.

Suggested Citation

  • Evan Moore, 2011. "Improving understanding of collusion in intermediate microeconomics," International Review of Economic Education, Economics Network, University of Bristol, vol. 10(1), pages 3-13.
    • Handle: RePEc:che:ireepp:v:10:y:2011:i:1:p:3-13
    as

    Download full text from publisher

    File URL: https://www.economicsnetwork.ac.uk/iree/v10n1/moore.pdf
    Download Restriction: no
    ---><---

    More about this item

    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:che:ireepp:v:10:y:2011:i:1:p:3-13. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Martin Poulter (email available below). General contact details of provider: https://www.economicsnetwork.ac.uk/iree .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.