IDEAS home Printed from https://ideas.repec.org/a/sej/ancoec/v793y2013p703-726.html
   My bibliography  Save this article

Tacit Collusion in Price-Setting Oligopoly: A Puzzle Redux

Author

Listed:
  • Matt Van Essen

    () (Department of Economics, Finance, and Legal Studies, University of Alabama,, 200 Alston Hall, Box 870224, Tuscaloosa, AL 35487; corresponding author.)

  • William B. Hankins

    () (Department of Economics, Finance, and Legal Studies, University of Alabama, 200 Alston Hall, Box 870224, Tuscaloosa, AL 35487;)

Abstract

We study tacit collusion in price-setting duopoly games with strategic complements and substitutes. While this problem has been considered by several studies, this article sheds new light on the comparison by focusing on the relationship between dynamic stability of equilibrium and tacit collusion. We find when controlling for the absolute slope of the reaction functions, there are no robust differences in either the convergence properties or tacit collusion between complements and substitutes treatments.

Suggested Citation

  • Matt Van Essen & William B. Hankins, 2013. "Tacit Collusion in Price-Setting Oligopoly: A Puzzle Redux," Southern Economic Journal, Southern Economic Association, vol. 79(3), pages 703-726, January.
  • Handle: RePEc:sej:ancoec:v:79:3:y:2013:p:703-726
    DOI: 10.4284/0038-4038-2011.157
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.4284/0038-4038-2011.157
    Download Restriction: no

    More about this item

    JEL classification:

    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L40 - Industrial Organization - - Antitrust Issues and Policies - - - General

    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:sej:ancoec:v:79:3:y:2013:p:703-726. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Laura Razzolini) The email address of this maintainer does not seem to be valid anymore. Please ask Laura Razzolini to update the entry or send us the correct email address. General contact details of provider: http://edirc.repec.org/data/seaaaea.html .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.