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A note on stable cartels

Author

Listed:
  • Liang Mao

    (Shenzhen University)

Abstract

Non-cooperative cartel formation games usually carry the assumption that cartel members will maximize their joint payoffs. Through an example, this note shows that this assumption is problematic because it imposes some unnecessary restrictions on cartel members' actions.

Suggested Citation

  • Liang Mao, 2018. "A note on stable cartels," Economics Bulletin, AccessEcon, vol. 38(3), pages 1338-1342.
    • Handle: RePEc:ebl:ecbull:eb-18-00150
    as

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    File URL: http://www.accessecon.com/Pubs/EB/2018/Volume38/EB-18-V38-I3-P127.pdf
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    References listed on IDEAS

    as
    1. Okada, Akira, 1996. "A Noncooperative Coalitional Bargaining Game with Random Proposers," Games and Economic Behavior, Elsevier, vol. 16(1), pages 97-108, September.
    2. Ray, Debraj & Vohra, Rajiv, 1999. "A Theory of Endogenous Coalition Structures," Games and Economic Behavior, Elsevier, vol. 26(2), pages 286-336, January.
    3. Carlo Carraro (ed.), 2003. "The Endogenous Formation of Economic Coalitions," Books, Edward Elgar Publishing, number 2999.
    4. Sang-Seung, Yi, 1996. "Endogenous formation of customs unions under imperfect competition: open regionalism is good," Journal of International Economics, Elsevier, vol. 41(1-2), pages 153-177, August.
    5. Miller, Steve & Nkuiya, Bruno, 2016. "Coalition formation in fisheries with potential regime shift," Journal of Environmental Economics and Management, Elsevier, vol. 79(C), pages 189-207.
    6. Debraj Ray & Rajiv Vohra, 1998. "A Theory of Endogenous Coalition Structures," Working Papers 98-1, Brown University, Department of Economics, revised Jan 1998.
    7. Michael L. Katz, 1986. "An Analysis of Cooperative Research and Development," RAND Journal of Economics, The RAND Corporation, vol. 17(4), pages 527-543, Winter.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Mao, Liang, 2020. "Designing international environmental agreements under participation uncertainty," Resource and Energy Economics, Elsevier, vol. 61(C).

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    More about this item

    Keywords

    cartel formation; stable cartel; self-enforcing agreement;
    All these keywords.

    JEL classification:

    • D7 - Microeconomics - - Analysis of Collective Decision-Making
    • H4 - Public Economics - - Publicly Provided Goods

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