Firms' symmetry and sustainability of collusion in a Hotelling duopoly
We use a differentiated duopoly a la Hotelling to assess the impact of firms' symmetry on the sustainability of a tacit collusive agreement. We obtain that the smaller firm has the greater incentive to deviate and that symmetry helps collusion for any possible differentiation degree.
Volume (Year): 29 (2009)
Issue (Month): 1 ()
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