Endogenous Cartel Formation with Private Information
This paper considers the effect of private information on the incentive to form a cartel that acts both as a strategy-coordination device and as an information-sharing device. Focusing on involuntary information transmission from the cartel to any outside firms, it is shown that private information can cause a disincentive to the formation of a cartel.
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Volume (Year): 25 (1992)
Issue (Month): 4 (November)
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