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Collusion enforcement with private information and private monitoring

Listed author(s):
  • Chan, Jimmy
  • Zhang, Wenzhang
Registered author(s):

    This paper shows that a cartel that observes neither costs, prices, nor sales may still enforce a collusive agreement by tying each firm's continuation profit to the truncated current profits of the other firms. The mechanism applies to both price and quantity competition, and the main features are broadly consistent with common cartel practice identified by Harrington and Skrzypacz [24].

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    File URL: http://www.sciencedirect.com/science/article/pii/S002205311500006X
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    Article provided by Elsevier in its journal Journal of Economic Theory.

    Volume (Year): 157 (2015)
    Issue (Month): C ()
    Pages: 188-211

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    Handle: RePEc:eee:jetheo:v:157:y:2015:i:c:p:188-211
    DOI: 10.1016/j.jet.2015.01.004
    Contact details of provider: Web page: http://www.elsevier.com/locate/inca/622869

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    27. Valerie Y. Suslow, 2005. "Cartel contract duration: empirical evidence from inter-war international cartels," Industrial and Corporate Change, Oxford University Press, vol. 14(5), pages 705-744, October.
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